Mary Earns a Monthly Income of $3,000

question 91

Essay

Mary earns a monthly income of $3,000. She spends the entire amount each month at the rate of $100 a day. (Assume there are 30 days in the month.) The interest rate paid on bonds is 5% per month. It costs $10 every time Mary sells a bond.
(a) Describe briefly how Mary should go about deciding how much money to hold.
(b) Mary can switch from bonds to cash up to a maximum of three times. How many times should Mary switch from bonds to cash?
(c) What is Mary's optimal balance?

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Definitions:

Female Genitals

The external and internal reproductive organs in females, involved in sexual pleasure, reproduction, and childbirth.

Intersexed Individuals

persons born with physical sex markers (genitals, hormones, gonads, or chromosomes) that do not fit typical definitions for male or female categories.

Surgical Enlargement

Medical procedures aimed at increasing the size of a body part or tissue, often utilized for cosmetic or reconstructive purposes.

Genitals

Reproductive organs, especially the external sex organs, involved in sexual reproduction and pleasure.