A savings and loan association estimates that the amount of money on deposit will be 100,000 times the percentage rate of interest. For instance, a 4% interest rate will generate $400,000 in deposits. Suppose the savings and loan association can loạn all the money it takes in at 12% interest. What interest rate on deposits generates the greatest profit? The interest rate on deposits that generates the greatest profit is (Type a whole number.) %

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
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A savings and loan association estimates that the amount of money on deposit will be 100,000 times the percentage rate of interest. For instance, a 4% interest rate will
generate $400,000 in deposits. Suppose the savings and loan association can loan all the money it takes in at 12% interest. What interest rate on deposits generates the
greatest profit?
The interest rate on deposits that generates the greatest profit is
%.
(Type a whole number.)
Transcribed Image Text:A savings and loan association estimates that the amount of money on deposit will be 100,000 times the percentage rate of interest. For instance, a 4% interest rate will generate $400,000 in deposits. Suppose the savings and loan association can loan all the money it takes in at 12% interest. What interest rate on deposits generates the greatest profit? The interest rate on deposits that generates the greatest profit is %. (Type a whole number.)
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