Question

The Fiedler family has up to $130,000 to invest. They decide that they want to have at least $40,000 invested in stable bonds yielding 5.5% and that no more than $60,000 should be invested in more volatile bonds yielding 11%. How much should they invest in each type of bond to maximize income if the amount in the stable bond should not exceed the amount in the more volatile bond? What is the maximum income?

Answer 1

In the volatile bonds = not > than 60,000 $

To get maximum yield , you have to invest 60,000 $ in 11% bonds

So amount invested in stable bonds = 130.000 - 60,000 = 70,000 $


This is more than 60,000 $

Both the conditions given cannot be satisfied.

Answer 2

Fan me if you will have any other questions.

Answer 3

Ah, alright. Thank you!