document.write( "Question 644469: An algebra student has won $100.000 in a lottery and wishes to deposit it in savings account in two financial institutions. One account pays 8% simple interest, but deposits are insured only to $50.000. The second account pays 6.4% simple interest, and deposits are insured up to $100.000. Determine whether the money can be deposited do that it is fully insured and earns annual interest of $7500. \n" ); document.write( "
Algebra.Com's Answer #405056 by DrBeeee(684)\"\" \"About 
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The student can't do it.
\n" ); document.write( "The maximum interest, while having full insurance, would to put $50,000 in first financial institution at 8%. This would yield
\n" ); document.write( "(1) I1 = 8/100*50000 or
\n" ); document.write( "(2) I1 = 4000
\n" ); document.write( "Then the interest from the second financial institution would be
\n" ); document.write( "(3) I2 = 6.4/100*50000 or
\n" ); document.write( "(4) I2 = 3200
\n" ); document.write( "Adding the interest made from each gives a maximum return of
\n" ); document.write( "(5) I = I1 + I2
\n" ); document.write( "(6) I = 7200
\n" ); document.write( "This is maximum because for ever dollar he/she moves from the first financial institution to the second, loses
\n" ); document.write( "(7) I1 - I2 = 0.08 - 0.06.4 or
\n" ); document.write( "(8) lose/dollar = 1.6 cents
\n" ); document.write( "Since the student wants full insurance coverage, he/she can only get $7,200 in interest. Not the desired $7,500. Sorry.
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