Question

Ralph Chase plans to sell a piece of property for ​$170000. He wants the money to be paid off in two waysa ​short-term note at ​12% interest and a​ long-term note at ​9% interest. Find the amount of each note if the total annual interest paid is ​$18000.

Answer 1

To determine the amount for each note, we solve the equation 0.12x + 0.09($170,000 - x) = $18,000. The solution gives us $90,000 for the short-term note at 12% interest and $80,000 for the long-term note at 9% interest.

Step-by-step explanation:

Ralph Chase plans to sell a piece of property for $170,000, with payments made through a short-term note at 12% interest and a long-term note at 9% interest. The total annual interest paid needs to be $18,000. Let's denote the amount for the short-term note as x, and therefore the amount for the long-term note will be $170,000 - x.

To find the amounts for each note, we'll set up the equation for total interest paid from both notes:
0.12x + 0.09($170,000 - x) = $18,000.

By solving this equation, we get:

Therefore, the amount of the short-term note is $90,000 and the long-term note is $80,000 (which is $170,000 - $90,000).

Answer 2

Answer: $90,000 at 12%

and $80,000 at 9%

Step-by-step explanation:

given data:

cost of property = $170,000.

short term = 12%.

long term = 9%.

total interest paid = $18,000.

Step 1

= 0.12x + 0.09 (170,000-x) = 18,000

collect like terms

= 0.12x + 15300 – 0.09x = 18,000

divide both Sides by 0.03

0.03x = 2700

x = $90,000 at 12%

and $80,000 at 9%