Question 1099125: An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 5%, on A bonds 6%, and on B bonds 9%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions?
A. The total investment is $9,000 and the investor wants an annual return of $560 on the three investments.
B. The values in part A are changed to 18,000 and 1120, respectively.
Ive tried this problem multiple times and the values I get are always way off, not sure what im doing wrong with the matrices.
Answer by jorel1380(3719)   (Show Source):
You can put this solution on YOUR website! Let m and n be B bonds and A bonds; respectively. Then AAA bonds would be 2m. So:
A. 2m+m+n=9000
3m+n=9000
and
.05(2m)+.06(n)+.09(m)=560
.1m+.06n+.09m=560
.19m+.06n=560
19m+6n=56000
3m+n=9000
Solve for m and n
B. 2m+m+n=18000
.05(2m)+.06(n)+.09(m)=1120
3m+n=18000
.19m+.06n=1120
Again, solve for m and n
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