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
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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(52781) (Show Source):
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.
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).
