SOLUTION: Mutual Funds Suppose that in a certain year, the Phoenix/Zweig Advisors Zweig Total Return fund (ZTR) was expected to yield 3%, and the Madison Asset Management Madison Strategic

Question 1198542: Mutual Funds Suppose that in a certain year, the Phoenix/Zweig Advisors Zweig Total Return fund (ZTR) was expected to yield 3%, and the Madison Asset Management Madison Strategic Sector Premium fund (MSP) was expected to yield 8%. You would like to invest a total of up to $60,000 and earn at least $3500 in interest. Draw the feasible region that shows how much money you can invest in each fund (based on the given yields).
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the following graph shows the feasible region.
any point in the red area has an investment greater than 60,000.
any point in the blue area has interest that is less than 3500.
any point in the unshaded area and on the lines that border the unshaded area are ok.
they have investment less than or equal to 60,000 and interest greater than or equal to 3500.

the following spreadsheet shows the calculations for all of the points except (24000,36000).
that point is also good because the total investment is less than or equal to 60,000 and the total interest is greater than or equal to 3500.
total investment is 26000 + 34000 = 60000
total interest is .03*26000 + .08*34000 = 2500

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