Assume That the Amount of Money Deposited in a Bank $24 \%$

question 72

Multiple Choice

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 36%.
Find the interest rate the bank should pay to maximize profit. (Use the simple interest formula.)

• A) \(24 \%\)
• B) \(29 \%\)
• C) \(27 \%\)
• D) \(36 \%\)
• E) \(21 \%\)

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Definitions:

AASB 2

Refers to the Australian Accounting Standards Board standard on Share-based Payment, which outlines the financial accounting and reporting of share-based payment transactions.

Business Combination

The process of bringing two or more companies together through various forms of financial transactions, resulting in a single combined entity.

AASB 2

An accounting standard issued by the Australian Accounting Standards Board that covers the accounting requirements for share-based payment transactions.