Zach is planning to invest up to $50,000 in corporate and municipal bonds. The lest he will invest in corporate bonds is $6000 and he does not want to invest more than $27,000 in corporate bonds. He also does not want to invest more than $34,650 in municipal bonds. The interest is 8.5% on corporate bonds and 6.8% on municipal bonds. This is simple interest for one year. What is the maximum income?

Answer 1

Well50k-27k=23k
So since 8.5%interest is on Corp bonds
27000*.085=2,295
23,000*.068=1,564
3,859$ is the most he makes from interest
Since it says maximum income look at the maximum amount he count spend on the higher interest rate then subtract from the total he wants to spend. Since they are percentages I divide by 100 (8.5%/100= .085)

Hope this helps!