Posted by **Bruce** on Thursday, December 2, 2010 at 10:15am.

. Margaret is planning to invest up to $22,000 in certificates of deposit at City Bank and People’s Bank. She wants to invest at least $2,000 but no more than $14,000 at City Bank. People’s Bank does not insure more than a $15,000 investment, so she will invest no more than that in People’s Bank. The interest is 6% at City Bank and 6½% at Peoples Bank. This is simple interest for one year. How much should she invest in each bank in order to maximize her income? What is the maximum income?

- Pre-Calculus -
**Henry**, Friday, December 3, 2010 at 5:32pm
Best Investment:

1. Peoples Bank, 15000 @ 6.5 %.

City Bank, 7000 @ 6%.

2. Peoples Bank:

Pt = Po + r*t*Po,

Pt = 15000 + 0.065 / yr *1yr * 15000,

Pt = 15000 + 975 = 15975.

City Bank:

Pt = 7000 + 0.06 / yr * 1yr * 7000,

Pt = 7000 + 420 = 7420.

Total Income = 15975 + 7420 = 23395.

## Answer This Question

## Related Questions

- Algebra 2 - A man is planning to invest up to $22,000in bank X or bank Y or both...
- Math - Jamaal is planning to invest up to $23000 in City Bank or State Bank. He...
- math - linear programming - A woman wishes to invest $12,000 in three of bonds: ...
- math algebra - Mrs. martinez has $10,000 to invest.One bank offers her a return ...
- precal -checking answers - Suppose Joan has $5,000 to invest. The banks are ...
- Math - Jason Printing has $85,000 to invest. They can invest in Wilder Revenue ...
- Math - Jason Printing has $85,000 to invest. They can invest in Wilder Revenue ...
- accounting - using the equation A=L+OE how would you balance this problem: You ...
- Finance - 7. Today you open a bank account and make a deposit of $6,000. Then ...
- Reserves-PLEASE HELP! - The Norfolk Bank has $18,000 in excess reservces and the...

More Related Questions