A pension fund manager decides to invest a total of at most $40 million in U.S. Treasury bonds paying 5% annual interest and in mutual funds paying 7% annual interest. He plans to invest at least $5 million in bonds and at least $10 million in mutual funds. Bonds have an initial fee of $100 per million dollars, while the fee for mutual funds is $200 per million. The fund manager is allowed to spend no more than $7000 on fees. 1) The amount that should be invested in Treasury bonds is $ __ million and the amount that should be invested in mutual funds is $ ___ million. 2) What is the maximum annual interest?
A pension fund manager decides to invest a total of at most $40 million in U.S. Treasury bonds paying 5% annual interest and in mutual funds paying 7% annual interest. He plans to invest at least $5 million in bonds and at least $10 million in mutual funds. Bonds have an initial fee of $100 per million dollars, while the fee for mutual funds is $200 per million. The fund manager is allowed to spend no more than $7000 on fees. 1) The amount that should be invested in Treasury bonds is $ __ million and the amount that should be invested in mutual funds is $ ___ million. 2) What is the maximum annual interest?
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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A pension fund manager decides to invest a total of at most $40 million in U.S. Treasury bonds paying 5% annual interest and in mutual funds paying 7% annual interest. He plans to invest at least $5 million in bonds and at least $10 million in mutual funds. Bonds have an initial fee of $100 per million dollars, while the fee for mutual funds is $200 per million. The fund manager is allowed to spend no more than $7000 on fees.
1) The amount that should be invested in Treasury bonds is $ __ million and the amount that should be invested in mutual funds is $ ___ million.
2) What is the maximum annual interest?
Thank you.
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