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Answer to Question #44215 in Microeconomics for muqaddus khalid

Question #44215
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 12%. Find the interest rate the bank should pay to maximize profit.
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Expert's answer
2014-07-16T09:54:54-0400
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