Question

4. 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 2% interest and a long-term note at 2.5%. Find the
amount of each note if the total annual interest paid is $5500

Answer 1

The amount of the short-term note is $100,000

The amount of the long-term note is $100,000

What are the linear equations?

a + b = $240,000 equation 1

0.02a + 0.025b = $5500 equation 2

Where:

a = amount of the short-term note

b =  amount of the long-term note

How much is each note?

Multiply equation 1 by 0.02

0.02a + 0.02b = 4,800 equation 3

Subtract equation 3 from equation 2

0.005b = 700

Divide both sides of the equation by 0.005

b = 700 / 0.005

b = $140,000

a = $240,000 - $140,000

a = $100,000

To learn more about linear functions, please check: https://brainly.com/question/26434260

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