Question

How would you set this one up as well?


5. You have up to $30,000 to invest. Your broker recommends investing in AAA bonds yielding 8% and B+ bonds yielding 12%. You decide to invest at most $12,000 in the B+-rated bond and at least $6,000 in the AAA bond. The amount invested in the AAA bond must exceed or equal the amount in the B+ bond. How much should be invested in each to maximize the return on the investment?

Answer 1

A + B = < 30,000
A > = B
B = < 12,000
B return > A return

In order to maximize money we have to invest it. The rate of retern is highest with the B bond
so, A + 12,000 = 30,000
B = 12,000
A = 18,000

Answer 2

Thanks for all your help on both problems!! :)