# Pre-Calculus

.  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?

1. 👍 0
2. 👎 0
3. 👁 321
1. 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.

1. 👍 0
2. 👎 0
posted by Henry

## Similar Questions

1. ### 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

asked by Kelsie on December 15, 2010
2. ### 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

asked by Anonymous on April 11, 2012
3. ### 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 high-risk bonds paying 12%. For tax reasons she wants the amount invested in municipal

asked by Sky on December 1, 2012
4. ### math,

. Mr. David, an individual investor, has \$70,000to divide among several investments. The alternative investments are municipal bonds with an 8.5% annual return, certificates of deposit with a 5% return, treasury bills with a 6.5%

asked by dudu on April 18, 2017
5. ### Math

A person wishes to invest R120 000 in three types of bonds:  municipal bonds (MF) paying 6% p.a.,  bank investment certificates (BF) paying 7% p.a. and  high-risk bonds (HF) paying on average 10% p.a. For tax purposes,

asked by Tshegofatso on March 6, 2018

If I decide to invest in certificates of deposit at 6% interest, how much will i need to deposit annually to accumulate a million dollars?

asked by Heather on April 5, 2010

If I decide to invest in certificates of deposit at 6% interest, how much will i need to deposit annually to accumulate a million dollars?

asked by Heather on April 5, 2010
8. ### MATH

Please help check my answers to make sure they are correct. I used the "sinking fund payment and present value of an ordinary annuity" formulas to solve this story problem. Thanks! Story: Naomi Dexter is 20 years old. She decides

asked by April on March 6, 2011
9. ### Math

Please help check my answers to make sure they are correct. I used the "sinking fund payment and present value of an ordinary annuity" formulas to solve this story problem. Thanks! Story: Naomi Dexter is 20 years old. She decides

asked by April on March 7, 2011
10. ### math

Ed has \$15,000 invested in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 4% so that the average return on the two investments is 6%?

asked by Anonymous on April 4, 2013

More Similar Questions