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?
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Start with the given facts (in millions of dollars).
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...
(The entire section contains 106 words.)
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