BANK OF BRUHMERICA

BANK OF BRUHMERICA
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  • BANK OFBRUHMERICA
  • OH MAN! THIS IS A LOT OF MONEY! $23,000 TO BE EXACT! I BETTER INVEST IT ALL!
  • $2 A BRUH MOMENT BUY ONE GET ONE FREE---->
  • PROFESSIONAL BANK BRUHKER
  • HI MA'AM! MY NAME IS MARTIN. WHAT INVESTING OPTIONS DO YOU HAVE?
  • HI! I'M MS. CREAGER. WE HAVE MUNICIPAL BONDS THAT YIELD 8% ANNUALLY, AND CERTIFICATES OF DEPOSITS THAT YIELD 11% ANNUALLY.
  • PROFESSIONAL BANK BRUHKER
  • PROFESSIONAL BANK BRUHKER
  • WOW! SOUNDS GOOD! I HAVE $23,000. HOW MUCH SHOULD I INVEST INTO EACH OF THEM IF I WANT TO HAVE A PROFIT OF EXACTLY $2,230 AFTER 1 YEAR?
  • PROFESSIONAL BANK BRUHKER
  • WELL MARTIN, IT'S ACTUALLY QUITE SIMPLE. TO CALCULATE THIS, YOU NEED THE FORMULA P1 * I1 + P2 * I2 = A1 SO IN OUR SCENARIO, WE WOULD GET THE EQUATION X(.08) + Y(.11) = $2,230.
  • PROFESSIONAL BANK BRUHKER
  • NOW, YOU MIGHT NOTICE THAT WE HAVE TWO VARIABLES: X, AND Y. IN ORDER TO SOLVE OUR EQUATION, WE NEED TO ONLY HAVE ONE VARIABLE. SINCE YOUR AMOUNT YOU CAN INVEST IS $23,300, WE CAN SUBSTITUTE THE Y VARIABLE WITH THE TERM "23,000 - X"
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