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.

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ebrightosagie ebrightosagie · Answer 1 · 2020-08-30T05:19:14+02:00

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%

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