SOLUTION: A city government has approved the construction of a $50 million sports arena. Up to $30 million will be raised by selling bonds that pay simple interest at a rate of 12% annually.

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Question 253725: A city government has approved the construction of a $50 million sports arena. Up to $30 million will be raised by selling bonds that pay simple interest at a rate of 12% annually. The remaining amount (up to $40 million) will be obtained by borrowing money from an insurance company at a simple interest rate of 10%. Determine whether the arena can be financed so that the annual interest is $5.2 million.
Thank you for the help!
Answer by richwmiller(17219) About Me  (Show Source):
You can put this solution on YOUR website!
.12*30,000,000+.10*40,000,00= interest
if it is less than 5.2 million then yes