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1. Cody wishes to sell a piece of property for $240,000. He wants the money to be
paid off in two ways: a short-term note at 6% interest and a long-term note at 5%.
Find the amount of each note if the total annual interest paid is $13,000.

Respuesta :

ViviOny

Answer:

P2 = 140,000

P1 = 100,000

Step-by-step explanation:

Let's use the simple interest formula: I = Prt

P1 + P2 = 240,000

P1(6%) + P2(5%) = 13,000 → 0.06x + 0.05y = 13,000

We now have:

P1 + P2 =240,000

0.06x + 0.05 = 13,000

Let's solve this by using elimination. We can multiply 3 at the top and 50 at the bottom.

We now have:

3x +3y = 720,000

3x + 2.5y = 650,000

So:

0.5y = 70,000

y = 140,000

Now plug-in 140,000 to the equation 3x + 2.5y = 650,000

3x + 2.5(140,000) = 650,000

3x + 350,000 = 650,000

3x = 300,000

x = 100,000

So, our answer is $100,000 must be short term and the remaining $140,000 must be long term

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