Question

Ralph Chase plans to sell a piece of property for ​$170000. He wants the money to be paid off in two ways monica ​short-term note at 9​% interest and a​ long-term note at 7​% interest. Find the amount of each note if the total annual interest paid is ​$13700.

Answer 1

Answer:

amount paid at a rate of 9% = 90000

amount paid at a rate of 7% = 170000-90000=80000

Explanation:

We have given total amount = $170000

Let amount paid at rate of 9% is x

Then amount paid at a rate of 7% = 170000-x

We know that sum of individual interest will be equal to total interest

So $0.09\times x+(170000-x)0.07=13700$

$9x+1190000-7x=1370000$

$2x=180000$

$x=90000$

So amount paid at a rate of 9% = 90000

And amount paid at a rate of 7% = 170000-90000=80000