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

amount paid at a rate of 9% = 90000

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

Step-by-step 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* 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