Question

Cody westmoreland wishes to sell a piece of property for $240000. He wants the money to be paid off in 2 ways-- a short term note at 2% interest, and a long term note at 2.5% interest. Find the amount of each note if the total annual interest paid is $5500

Answer 1

Long note = 140000

short note = 100000

Let x be the short term note

Let y be the long term note

x + y = 240000

2%x + 2.5%y = 5500

on solving the above equations we get,

x = 100000

y = 140000