PreCalculus
posted by Bruce .
. 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?

PreCalculus 
Henry
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.
Respond to this Question
Similar Questions

accounting
using the equation A=L+OE how would you balance this problem: You buy acompany for $200,000  Assets are land $50,000, building $130,000, equip $20,000. Took 70,000 from personal bank account to invest in business. Made a down payment … 
precal
Suppose Joan has $5,000 to invest. The banks are offering 3.10% interest. Bank A compounds interest continuously, while Bank B compounds interest semiannually. Use the Rule of 72 to estimate how much time it would take to double Joan's … 
precal checking answers
Suppose Joan has $5,000 to invest. The banks are offering 3.10% interest. Bank A compounds interest continuously, while Bank B compounds interest semiannually. Answer these questions regarding which bank Joan should invest her money … 
Algebra 2
A man is planning to invest up to $22,000in bank X or bank Y or both. He wants to invest at least $2,000 but no more than $14,000 in bank X. Bank Y doesn't insure more than a $15,000 investment so he will not invest no more than that … 
Math
Jamaal is planning to invest up to $23000 in City Bank or State Bank. He wants to invest at least $4000 in City Bank, but not more than $16000; since State Bank does not insure more than $8000, he wants to invest no more than this … 
math algebra
Mrs. martinez has $10,000 to invest.One bank offers her a return of 7.5% on the whole sum. Another bank offers her a return of 8% on part of the sum, and 6% on the rest of the sum. How much of the $10,000 would need to be invested … 
math  linear programming
A woman wishes to invest $12,000 in three of bonds: municipal bonds paying 7% interest per year, bank investment certificates paying 8%, and highrisk bonds paying 12%. For tax reasons she wants the amount invested in municipal bonds … 
Math
Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly. a) Calculate the two APYs and compare them to determine your answer. Make … 
Math
Jason Printing has $85,000 to invest. They can invest in Wilder Revenue at 10% compounded semiannually or at Cheapskate Investments at 9.8% compounded monthly. a) Calculate the two APYs and compare them to determine your answer. Make … 
Maths
A bank charges 2 1/2% commission for issuing a bank draft. If a customer obtained a bank draft for #84,000 from the bank, calculate the total cost of the bank draft