Question 1142001: A financier plans to invest up to $500,000 in two projects. Project A yields a return of 10% on the investment of x dollars, whereas Project B yields a return of 16% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A, she has decided that the investment in Project B should not exceed 40% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment?
(x, y) =
What is the maximum return?
$
Answer by greenestamps(13200)   (Show Source):
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Obviously, to maximize the return she needs to invest the maximum possible amount at the higher rate. She must therefore invest 40% of the total in B, since she has decided that no more than 40% of the total should be invested there.
ANSWER: 40% of the $500,000, or $200,000, in B; the other $300,000 in A.
next ANSWER: .16($200,000)+.10($300,000)
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