Fine-Tuned Savings Association finds that it can attract the following amounts of deposits if it offers new depositors and those rolling over their maturing CDs at the interest rates indicated below: Expected Volume of New Deposits Rate of Interest Offered Depositors $10 million 1.55% 15 million 1.85% 20 million 2.05% 26 million 2.30% 28 million 2.55% Management anticipates being able to invest any new deposits raised in loans yielding 4.75 percent. How far should this thrift institution go in raising its deposit interest rate in order to maximize total profits (excluding interest costs)
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