Jamaal is planning to invest up to $15000 in City Bank or State Bank. He wants t

Question

Jamaal is planning to invest up to $15000 in City Bank or State Bank. He wants to invest at least $3000 in City Bank, but not more than $13000; since State Bank does not insure more than $11000, he wants to invest no more than this amount in State Bank. The interest at City Bank is 7 %, and the interest at State Bank is 11 %. How much should he invest in each bank to earn the most interest? What is the maximum amount of interest that Jamaal can earn?

He should invest $___ in city bank and $____ in state bank

The maximum amount of interest that jamaal can earn is $_____

Explanation / Answer

Let investment in City Bank be x and State Bank be y

So, x+y<=15000

x>=3000 or -x<=-3000

x<=13000

y<=11000

Maximize x*7%+y*11%

We solve for x and y

x=4000 and y=11000

Hence, he should invest $4000 in City Bank and $11000 in State Bank and he will earn 4000*7%+11000*11%=$1490 as maximum interest

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