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The amount of money, A , that customers deposit in a bank in savings accounts is directly proportional to the interest rate, r , that
The amount of money, A, that customers deposit in a bank in savings accounts is directly proportional to the interest rate, r, that the bank pays on that money. Suppose that a bank was able to loan out all the money deposited in its savings accounts at an interest rate of 17.5%. What interest rate should the bank pay on its savings accounts in order to maximize profit?
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