A pension fund manager decides to invest a total of  at most $30 million in U.S. Treasury bonds paying 4% annual  interest and in mutual funds paying 8% annual interest. The  fund manager plans to invest at least $5 million in bonds and at  least $10 million in mutual funds. Bonds have an initial fee of  $100 per million dollars, while the fee for mutual funds is  $200 per million. The fund manager is allowed to spend no  more than $5000 on fees. How much should be invested in  each to maximize annual interest? What is the maximum  annual interest?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A pension fund manager decides to invest a total of 
at most $30 million in U.S. Treasury bonds paying 4% annual 
interest and in mutual funds paying 8% annual interest. The 
fund manager plans to invest at least $5 million in bonds and at 
least $10 million in mutual funds. Bonds have an initial fee of 
$100 per million dollars, while the fee for mutual funds is 
$200 per million. The fund manager is allowed to spend no 
more than $5000 on fees. How much should be invested in 
each to maximize annual interest? What is the maximum 
annual interest?

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