A savings and loan association estimates that the amount of, Finance Basics

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A savings and loan association estimates that the amount of

Question: A savings and loan association estimates that the amount of money on deposit will be 1,000,000 times the percentage rate of interest. For instance, a 2% interest rate will generate $2,000,000 in deposits. Suppose the savings and loan association can loan all the money it takes in at 4% interest. What interest rate on deposits generates the greatest profit?

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Finance Basics: A savings and loan association estimates that the amount of

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Finance Basics: A savings and loan association estimates that the amount of

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