Project A: 0.6*500,000 = $300,000 @ 8%.
Project B: 0.4*500,000 = $200,000 @ 13%.
(x, y) = (300000,200000).
I = 0.08*300,000 + 0.13*200,000 =
A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas Project B yields a return of 13% 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?
$
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