SOLUTION: ralph chase plans to sell a piece of property for $160000. he wants the money to be paid off in two ways- a short term note at 11% interest and a long term note at 9% interest. fin

Question 1145471: ralph chase plans to sell a piece of property for $160000. he wants the money to be paid off in two ways- a short term note at 11% interest and a long term note at 9% interest. find the amount of each note if the total interest paid is $16100.
Answer by ikleyn(52784) (Show Source): You can put this solution on YOUR website!
.

Let x be the amount invested at 11% interest.


Then the amount invested at 9% is (160000-x)  dollars.


The total interest equation is


    0.11x + 0.09*(160000-x) = 16100  dollars.


From the ecuation, express x and calculate


    x =  = 85000 dollars.


Answer.  $85000 invested at 11%, and the rest (160000-85000) = 75000 dollars invested at 9%.


CHECK.   0.11*85000 + 0.09*75000 = 16100 dollars.   ! Correct !

Solved.

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It is a standard and typical problem on investments.

If you need more details, or if you want to see other similar problems solved by different methods, look into the lesson
- Using systems of equations to solve problems on investment
in this site.

You will find there different approaches (using one equation or a system of two equations in two unknowns), as well as
different methods of solution to the equations (Substitution, Elimination).

Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Systems of two linear equations in two unknowns".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

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