Ralph plans to sell a piece of property for 140000 He wants

Ralph plans to sell a piece of property for $140,000. He wants the money to be paid off in two ways; a short-term note at 10% interest and a long-term note at 7% interest. Find the amount of each note if the total annual interest paid is $12, 050.

Solution

Total Amount = $140,000
Total Interest = $12,050
Amount to be paid off at 10% = x
Amount to be paid off at 7% = 140,000 - x
Amount to be paid off at 10% * 10% + Amount to be paid off at 7% * 7% = Total Interest
x*10/100 + (140000-x)*7/100=12050
x*0.1+(140000-x)*0.07=12050
0.1x+9800-0.07x=12050
0.03x=12050-9800

0.03x=2250
x=2250/0.03
x=75000

Amount to be paid off at 10% = x = $75,000
Amount to be paid off at 7% = 140,000 - 75,000 = $65000