Question

Ralph chase plans to sell a piece of property for $145000. He wants the money to be paid off in two ways a 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 $13850.

Answer 1

Given :

Price of property , P = $145000 .

Money paid off in two ways a short term note at 11% interest and a long term note at 8% interest.

Total interest , I = $13850 .

To Find :

The amount of each note .

Solution :

Let , x money is paid off in 11 % interest rate and ( 145000-x) in 8% interest rate.

Therefore , their sum of interest in mathematics is given by :

`(11x)/(100)+(8(145000-x))/(100)=13850\\\\11x+1160000-8x=1385000\\\\3x=225000\\\\x=\$75000`

Therefore , the amount of note is $75000 and $70000 for 11% and 8% interest rate respectively .

Hence , this is the required solution .