Ask a question

interest, money

A city government has approved the construction of an $800 million sports arena. Up to $480 million will be raised by selling bonds that pay simple interest at a rate of 7% annually. The remaining amount (up to $640 million) will be obtained by borrowing money from an insurance company at a simple interest rate of 2%. Determine whether the arena can be financed so that the annual interest is $30 million. (If there is no solution, enter NO SOLUTION.)
The arena should be financed by selling $                     million in bonds and borrowing $                     million

No answers ... yet!