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An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $22,000, and the investor wants an annual return of $1,590 on the three investments. The client should invest $ in AAA bonds, $ in A bonds, and $ in B bonds.

An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $22,000, and the investor wants an annual return of $1,590 on the three investments. The client should invest $ in AAA bonds, $ in A bonds, and $ in B bonds.

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 28EQ
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An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $22,000, and the investor wants an annual return of $1,590 on the three investments. The client should invest $ in AAA bonds, $ in A bonds, and $ in B bonds.
Transcribed Image Text:An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 6%, on A bonds 7%, and on B bonds 10%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond if the total investment is $22,000, and the investor wants an annual return of $1,590 on the three investments. The client should invest $ in AAA bonds, $ in A bonds, and $ in B bonds.
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