Assume that the amount of money deposited in a bank is proportional to the square of the interest rate the bank pays on this money. Furthermore, the bank can reinvest this money at 27%. Find the interest rate the bank should pay to maximize profit. (Use the simple interest formula.)

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter2: Functions And Graphs
Section2.3: Linear Functions And Slope
Problem 105E
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Assume that the amount of money deposited in
a bank is proportional to the square of the
interest rate the bank pays on this money.
Furthermore, the bank can reinvest this money
at 27%. Find the interest rate the bank should
pay to maximize profit. (Use the simple interest
formula.)
Transcribed Image Text:Assume that the amount of money deposited in a bank is proportional to the square of the interest rate the bank pays on this money. Furthermore, the bank can reinvest this money at 27%. Find the interest rate the bank should pay to maximize profit. (Use the simple interest formula.)
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