A pension fund manager decides to invest a total of at most $30 million in US treausry bonds paying 6% annual intrest and in mutual funds paying 9% annual interest. He plants to invest at least $5 million in bonds and at least $15 million in mutual funds. Bobds have a 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.   1.How much should be invested in eacg ot maximise interest   A-Amount to be invested in treasury bonds   B-Amount that should be invested in mutual funds   C-What is the maximum annual interrst

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A pension fund manager decides to invest a total of at most $30 million in US treausry bonds paying 6% annual intrest and in mutual funds paying 9% annual interest. He plants to invest at least $5 million in bonds and at least $15 million in mutual funds. Bobds have a 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.

 
1.How much should be invested in eacg ot maximise interest
 
A-Amount to be invested in treasury bonds
 
B-Amount that should be invested in mutual funds
 
C-What is the maximum annual interrst

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