Question

A financier plans to invest up to $325,000 in two projects. Project A yields a return of 10% on the investment, whereas Project B yields a return of 15% on the investment. Because the investment in Project B is riskier than the investment in Project A, the financier has decided that the investment in Project B should not exceed 40% of the total investment. How much should she invest in each project to maximize the return on her investment?
Project A $
Project B $

What is the maximum return?

Answer 1

To achieve the maximum return, obviously the financier should invest the maximum she is prepared to put into Project B, which is 40% of $325,000. Can you calculate this amount?

Answer 2

40% of $325,000 is given by:
\[\large \frac{325000\times40}{100}=you\ can\ calculate\]

Answer 3

When you have calculated the investment for Project B (as above), subtract that amount from $325,000 to find the investment amount for Project A.

Answer 4

thank you

Answer 5

You're welcome :)