Question

Carlos has $690,000 he wants to save. If the FDIC insurance limit per depositor, per bank, is $250,000, which of these ways of distributing his money between three banks will guarantee that all of his money will be insured

Answer 1

$230,000 in bank A, $240,000 in bank B, $220,000 in bank C

Answer 2

Carlos deposit $240,000 in bank A , $220,000 in bank B and $230,000 in bank C .

Explanation:

The total amount Carlos has $690,000

since, FDIC insurance limit per depositor per bank is $250,000

So, Carlos can't deposit $690,000 in one bank directly.

If Carlos deposit $240,000 in bank A

then he left with $690,000 - $240,000 =$450,000

we divide $450,000 =$220,000 + $230,000

So, Carlos deposit $220,000 in bank B and $230,000 in bank C

Hence, Carlos deposit $240,000 in bank A , $220,000 in bank B and $230,000 in bank C .