A City Zoo Borrowed $2,000,000 at Simple Annual Interest to Construct

question 73

Multiple Choice

A city zoo borrowed $2,000,000 at simple annual interest to construct a breeding facility. Some of the money was borrowed at 3%, some at 5%, and some at 10%. Use a system of equations to determine how much was borrowed at 5% if the total annual interest was $105,000 and the amount borrowed at 3% was twice the amount borrowed at 10%. Solve the system using matrices.

• A)$700,000 was borrowed at 5%
• B)$500,000 was borrowed at 5%
• C)$1,600,000 was borrowed at 5%
• D)$1,000,000 was borrowed at 5%
• E)$100,000 was borrowed at 5%

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Definitions:

Income Statement

A report showcasing a business's fiscal results during a particular accounting cycle, which includes information on income, costs, and profit.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and factory management salaries, not directly tied to producing a specific product.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision or choosing an option.

Activity Increases

A term indicating a rise in the level of business or production activities.