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March 27, 2017

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Carletta has $10,000 to invest. As her financial consultant you recommend that she invest in Treasury Bills that yield 6%, Treasury Bonds that yield 7%, and coroporate bonds that yield 8%. Carletta wants to have an annual income of $680, and the amount invested in corporate bonds must be half that invested in Treasury Bills. Find the equations.

  • Mathematics - ,

    Bills + Bonds + Corporate=10000
    Bills + Bonds + 1/2 Bills=10000
    That is equation 1)
    Bills(.06)+ bonds(.07) + corporate(.08)=680
    Bills*.06 + bonds*.07 +1/2 bills*.08=680 or equation 2)
    1.5*bills(.06) + bonds(.07)=680

    So now you have two equations, two unknowns, and you can solve.

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