zach is planning to invest up to $40,000 in corporate and municipal bonds. the least he will invest in corporate bonds is $8,000 and he does not want to invest more than $28,000 in corporate bonds. he also does not want to invest more than $28,113 in municipal bonds. the interest is 8.3% on corporate bonds and 6.3% on municipal bonds. this is simple interest for one year. what is the maximum value of his investment after one year?

Question

anonymous · Answer

a. $43,080
b. $31,080
c. $15,080
d. $17,568

perl · Answer

hint: since the interest rate is greater on the corporate bonds, he should invest the maximum possible amount in corporate bonds

agl202 · Answer

Since the return on corporate bonds is higher than municipal bonds, he ought to invest the most in corporate bonds. 

Investing in the maximum of $28000 leaves $17000 remaining for investment on municipal bonds. 

$28000 * 0.087 = $2436 for interest on corporate bonds 

$17000 * 0.061 = $1037 for interest on municipal bonds. 

Therefore adding $2436 and $1037 gives us his total interest or income. 
His total interest gives us $3473 

I hope this helped!!!  =)

perl · Answer

you copy pasted that from yahoo answers?

agl202 · Answer

I know: https://answers.yahoo.com/question/index?qid=20090430043617AAah7da @perl Im not afraid to admit it!!!

perl · Answer

ok just wondering