Financial Planning Mark has $100,000 to invest. His financial consultant advises him to diversify his investment in three types of bonds: short-term, intermediate-term, and long-term. The short-term bonds pay 4%, the intermediate- term bonds pay 5%, and the long-term bonds pay 6% simple interest per year. Mark wishes to realize a total annual income of 5.1%, with equal amounts invested in short- and intermediate-term bonds. How much should he invest in each type of bond?

Financial Planning Mark has $100,000 to invest. His financial consultant advises him to diversify his investment in three types of bonds: short-term, intermediate-term, and long-term. The short-term bonds pay 4%, the intermediate- term bonds pay 5%, and the long-term bonds pay 6% simple interest per year. Mark wishes to realize a total annual income of 5.1%, with equal amounts invested in short- and intermediate-term bonds. How much should he invest in each type of bond?

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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