Young MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.
Young MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Young MBA Erica Cudahy can invest up to $20,000
in stocks and loans. Each dollar invested in stocks
yields $0.08 profit, and each dollar invested in a loan
yields $0.13 profit. At least 40% of all money invested
must be in stocks, and at least $7000 must be in loans.
Determine how Erica can maximize the profit earned
on her investments.
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