Homework Help Forum: Math Analysis (similar to my previous question)

Posted by Emily on Tuesday, October 6, 2009 at 12:10am.

How would you set this one up as well? 5. You have up to $30,000 to invest. Your broker recommends investing in AAA bonds yielding 8% and B+ bonds yielding 12%. You decide to invest at most $12,000 in the B+-rated bond and at least $6,000 in the AAA bond. The amount invested in the AAA bond must exceed or equal the amount in the B+ bond. How much should be invested in each to maximize the return on the investment?

• Math Analysis (similar to my previous question) - nina, Tuesday, October 6, 2009 at 12:16am

  A + B = < 30,000 A > = B B = < 12,000 B return > A return In order to maximize money we have to invest it. The rate of retern is highest with the B bond so, A + 12,000 = 30,000 B = 12,000 A = 18,000

  
  

• Math Analysis (similar to my previous question) - Emily, Tuesday, October 6, 2009 at 12:25am

  Thanks for all your help on both problems!! :)

  
  

Answer this Question

First Name:
School Subject:
Answer: