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Ralph Chase plans to sell a piece of property for $135000. He wants the money to be paid off in two ways - a short-term note at 12% interest and a long-term
note at 9% interest. Find the amount of each note if the total aannual interest paid is $14250.

Answer 1

let 'x' represent the amount at 12% interest, then '140000-x' represents the amount of 9% interest



interest = principal * rate * time

we assume time to be equal to 1



14850 = 0.12x + 0.09(140000-x)

solving for 'x' we have x=75000



140000-75000 = 65000



Ralph needs a note for $75,000 at 12% interest and a note at $65,000 at 9% interest