# A pension fund manager decides to invest a total of at most \$35 million in U.S treasury bonds paying 5% annual interest and in mutual funds paying 8% annual interest. He plans to invest at least \$5...

A pension fund manager decides to invest a total of at most \$35 million in U.S treasury bonds paying 5% annual interest and in mutual funds paying 8% annual interest. He plans to invest at least \$5 million in bonds and at least \$15 million in mutual funds. Bonds have an initial fee of \$100 per million dollars, while the fee for mutual funds is \$200 per million. The fund manager is allowed to spend no more than \$6000 on fees. How much should be invested in each to maximize annual interest?

Angie Waters | Certified Educator

calendarEducator since 2012

starTop subjects are Literature, Math, and Social Sciences

Let `x =` Treasury bonds and let `y=` Mutual funds:

`xgt=5` and `ygt=15`

We also know that `0.0001x+0.0002ylt=0.006` so to make it easier to work with we can say...

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