Question 941397: Ralph Chase plans to sell a piece of property for $170,000. 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 annual interest paid is $17,200.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Ralph Chase plans to sell a piece of property for $170,000. 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 annual interest paid is $17,200.
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Equation:
interest + interest = interest
0.11x + 0.09(170,000-x) = 17,200
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11x + 9*170000 - 9x = 1720000
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2x = 190000
x = 95000 (amt. paid off at 11%)
170,000-x = 170,000-95000 = 75000 (amt. paid off at 9%)
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Cheers,
Stan H.
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