An investor has at most $40,000 to invest in government bonds, mutual funds, and money market funds. The average yields for the government bonds, mutual funds and money market funds are 7%, 10%, and 12% respectively. The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? How much should be invested in government bonds?

An investor has at most $40,000 to invest in government bonds, mutual funds, and money market funds. The average yields for the government bonds, mutual funds and money market funds are 7%, 10%, and 12% respectively. The investor's policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return in the first year? How much should be invested in government bonds?

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

Problem 3SC: In Example 3, if the accountant earns a profit of 100 on each individual return and a profit of 175...

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