Question 111374: This is a linear programming question. I have played around with the numbers to try and make a formula but I am stumped. The question is...
Ms. Smith plans to invest up to $40,000 in corporate and municipal bonds. She doesn't want to invest less than $6000 or more than $22,000 in corporate bonds. She also does not want to invest more that $30,000 in municipal bonds. Corporate bonds earn 8% simple interest and municipal bonds earn 7 and a half % simple interest. How much should she invest to maximize income (interest)? What is the maximum income?
Answer by edjones(8007)   (Show Source):
You can put this solution on YOUR website! Since corporate bonds have a higher interest rate than munis she should invest as much as she can in corporates ($22,000.).
40-22=18k in munis
Maximum income=22000*.08+18000*.075=$3,110/yr
Ed
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