Chapter 3.1, Problem 44E

Debt payment Ace, Baker, and Champ are being purchased by ALCO, Inc., and their outstanding debts must be paid by the purchaser. The following matrix gives the amounts of debt in dollars and the terms for the companies being purchased.

$\begin{array}{l}\begin{array}{cc}Duein30days& Duein60days\end{array}\\ \begin{array}{c}Ace\\ Ba\ker \\ Champ\end{array}\left[\begin{array}{l}120,000180,000\\ 75,00045,000\\ 105,000174,000\end{array}\right]\end{array}$

If ALCO pays $35\%$ of the amount owed on each debt, write the matrix giving the remaining debts.

Suppose ALCO decides to pay $80\%$ of all debts due in $30$ days and to increase the debts in $60$ days by $20\%.$

Write a matrix gives the debts after these transactions are made.