Question 1166624: A financial consultant wishes to invest up to a total of $30,000 in two types of securities, one that yields 10% per year and the other yields 8% per year. Furthermore, she believes that the amount invested in the first security should be at most one-third of the amount invested in the second security. What investment program should the consultant pursue in order to maximize income?
Clearly outline the objective function and the constraints.
Answer by ikleyn(52775)   (Show Source):
You can put this solution on YOUR website! .
Even without any calculations, based on the common sense ONLY, it is clear that the most winning strategy
under given conditions is the most aggressive possible investment.
It is to invest 1/4 of the total to the high percent investment and 3/4 of the total to the low percent investment.
So, $7500 go at the 10% investment and $22500 go at the 8% investment, giving total interest of
0.1*7500 + 0.08*22500 = 2550 dollars. ANSWER
Solved.
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