Answer:
The amount of the 10% note is $90,000 and the amount of the 7% note is $75,000
Step-by-step explanation:
Let the amount paid on the 7% note be $x and the amount paid on the 10% note be $y
we know that the sum of both is 165,000
Thus, mathematically
x + y = 165,000 •••••••(i)
Now let’s take a look at interest paid
For the 7%;
7/100 * x = 0.07 * x = 0.07x
For the 10%
10/100 * y = 0.1 * y = 0.1y
The addition of both gives $14,250
0.07x + 0.1y = 14,250 •••••(ii)
We now solve both equations simultaneously
From equation 1, we can have;
x = 165,000 -y
we can substitute this into ii
0.07(165,000-y) + 0.1y = 14,250
11,550 -0.07y + 0.1y = 14,250
0.03y = 14,250-11,550
0.03y = 2700
y = 2700/0.03
y = $90,000
Recall;
x = 165,000-y
x = 165,000 -90,000
x = $75,000
