Question

Ralph Chase plans to sell a piece of property for ​$160,000. He wants the money to be paid off in two ways monica ​short-term note at 11​% interest and a​ long-term note at 8​% interest. Find the amount of each note if the total annual interest paid is ​$15,500.

Answer 1

Answer:

• short-term: $90,000
• long-term: $70,000

Step-by-step explanation:

Let x represent the amount borrowed on the short term. Then 160000-x is the amount of the long-term note. The total interest is ...

  0.11x +0.08(160000-x) = 15500

  0.03x + 12800 = 15500 . . . . simplify

  0.03x = 2700 . . . . . . . . . subtract 12800

  x = 2700/.03 = 90,000 . . . . short-term note

  160,000 -90,000 = 70,000 . . . . long-term note

The short-term note was for $90,000; the long-term note was for $70,000.