Answer:
The amount of 12% note is $90,000
The amount of 9% note is $80,000
Step-by-step explanation:
Missing word <em>"The amount of the 12% note is $ and the amount of the 9% note is $"</em>
<em />
Selling price = $170,000
Let x be the amount of money paid short term, therefore the amount of money paid long term is (170000 - x)
Given total annual interest = $18,000
Total annual interest = Interest due to short term (x) + interest due to long term (170000 - x)
18,000 = 0.12x + 0.09*(170000 - x)
18,000 = 0.12x + 15,300 - 0.09x
18,000 = 0.03x + 15,300
0.03x = 18,000 - 15,300
0.03x = 2,700
x = 2,700/0.03
x = 90,000
So, the amount of 12% note is $90,000
So long term paid money = $170,000 - $90,000 = $80,000
So, the amount of 9% note is $80,000
