Homework Help: Algebra

Posted by Steph on Monday, February 1, 2010 at 9:55pm.

an algebra student won $115,000 in a lottery and wishing to deposit it in savings accounts in two financial institutions. One account pays 7.9% simple interest but only insures $60,000. The second account pays 6.9% simple interest and deposits are insured up to $100,000. Determine the maximum amount of annual interest the student can earn while keeping all money insured.

Algebra - drwls, Monday, February 1, 2010 at 11:27pm
Put the maximum insured amount (60,000) in the bank paying the higher interest, and the remainder in the other bank.
7.9% x 60,000 + 6.9% x 55,000 = $8535.

All money and earnings will be insured.

Answer this Question

Related Questions

algebra interest word problem - Erin Grabish recevied $2,000 for speaking at a ...
algebra - Amelia's parents and grand parents have both opened savings ...
arithmetic - Amelia's parents and grand parents have both opened savings ...
math - If you deposit $10,000 in a savings account now, what interest rate ...
algebra - Suppose a student wants to be a millionaire in 40 years. If she has an...
Algebra - Suppose a student wants to be a millionaire in 40 years. If she has an...
algebra - 3. Suppose a student wants to be a millionaire in 40 years. If she has...
acc 100 - Metzger Company compiled the following financial information as of ...
accounting - The following financial data were taken from the annual financial ...
Reserves-PLEASE HELP! - The Norfolk Bank has $18,000 in excess reservces and the...

For Further Reading

First Name:
School Subject:
Answer: