Investing in Bonds A woman wishes to invest $12,000 in three types of bonds: municipal bonds paying 7% interest per year, bank certificates paying 8%, and high-risk bonds paying 12%. For tax reasons she wants the amount invested in municipal bonds to be at least three times the amount invested in bunk certificates. To keep her level of risk manage-able, she will invest no more than $2000 in high-risk bonds. How much should she invest in each type of bond to maximize her annual interest yield? [Hint: Let x = amount in municipal bonds and y = amount in bunk certificates. Then the amount in high-risk bonds will be 12,000 − x − y.]
To find: The amount money a women invest in the municipal bond, bank certificate bond and high-risk bond for the maximum interest.
Answer to Problem 13P
Women invest
Explanation of Solution
Given:
The total amount of money is
The municipal bond pays
The amount of money a women invested in municipal bond is three times the invested in bank certificates.
Women invest no more than
Calculation:
Suppose the amount invested in the municipal bond is x and the amount invested in the bank certificate bond is y for the maximum interest.
Then the amount invested in the high risk bond is
Use the given information to make the inequalities and the objective function for the feasible region.
The required information is shown in the table below.
municipal bond | Bank certificate bond | high-risk bond | |
Amount of money | x | y |
|
The objective function is,
The constraint to get the feasible region has shown below.
Now, take the equalities of the above inequalities,
And,
And,
And,
Substitute
Substitute 2500 for y in equation (3),
The intersection point is
Substitute
Substitute 3000 for y in equation (3),
Now, draw the graph of the above equations,
Figure (1)
The vertices which lies in the feasible region is shown below.
Substitute the 7500 for x and 2500 for y in the objective function
Substitute the 10000 for x and 0 for y in the objective function
Substitute the 12000 for x and 0 for y in the objective function
Substitute the 9000 for x and 3000 for y in the objective function
So, all the satisfies these vertices are shown in the table below.
Vertices |
|
| 965(Maximum) |
| 940 |
| 840 |
| 960 |
The maximum interest rate is 965 at the investment
Thus, a women invest
Chapter 10 Solutions
Precalculus: Mathematics for Calculus - 6th Edition
- 4c Consider the function f(x) = 10x + 4x5 - 4x³- 1. Enter the general antiderivative of f(x)arrow_forwardA tank contains 60 kg of salt and 2000 L of water. Pure water enters a tank at the rate 8 L/min. The solution is mixed and drains from the tank at the rate 11 L/min. Let y be the number of kg of salt in the tank after t minutes. The differential equation for this situation would be: dy dt y(0) =arrow_forwardSolve the initial value problem: y= 0.05y + 5 y(0) = 100 y(t) =arrow_forward
- y=f'(x) 1 8 The function f is defined on the closed interval [0,8]. The graph of its derivative f' is shown above. How many relative minima are there for f(x)? O 2 6 4 00arrow_forward60! 5!.7!.15!.33!arrow_forward• • Let > be a potential for the vector field F = (−2 y³, −6 xy² − 4 z³, −12 yz² + 4 2). Then the value of sin((-1.63, 2.06, 0.57) – (0,0,0)) is - 0.336 -0.931 -0.587 0.440 0.902 0.607 -0.609 0.146arrow_forward
- The value of cos(4M) where M is the magnitude of the vector field with potential ƒ = e² sin(лy) cos(π²) at x = 1, y = 1/4, z = 1/3 is 0.602 -0.323 0.712 -0.816 0.781 0.102 0.075 0.013arrow_forwardThere is exactly number a and one number b such that the vector field F = conservative. For those values of a and b, the value of cos(a) + sin(b) is (3ay + z, 3ayz + 3x, −by² + x) is -0.961 -0.772 -1.645 0.057 -0.961 1.764 -0.457 0.201arrow_forwardA: Tan Latitude / Tan P A = Tan 04° 30'/ Tan 77° 50.3' A= 0.016960 803 S CA named opposite to latitude, except when hour angle between 090° and 270°) B: Tan Declination | Sin P B Tan 052° 42.1'/ Sin 77° 50.3' B = 1.34 2905601 SCB is alway named same as declination) C = A + B = 1.35 9866404 S CC correction, A+/- B: if A and B have same name - add, If different name- subtract) = Tan Azimuth 1/Ccx cos Latitude) Tan Azimuth = 0.737640253 Azimuth = S 36.4° E CAzimuth takes combined name of C correction and Hour Angle - If LHA is between 0° and 180°, it is named "west", if LHA is between 180° and 360° it is named "east" True Azimuth= 143.6° Compass Azimuth = 145.0° Compass Error = 1.4° West Variation 4.0 East Deviation: 5.4 Westarrow_forward
- ds 5. Find a solution to this initial value problem: 3t2, s(0) = 5. dt 6. Find a solution to this initial value problem: A' = 0.03A, A(0) = 100.arrow_forward2) Drive the frequency responses of the following rotor system with Non-Symmetric Stator. The system contains both external and internal damping. Show that the system loses the reciprocity property.arrow_forward1) Show that the force response of a MDOF system with general damping can be written as: X liax) -Σ = ral iw-s, + {0} iw-s,arrow_forward
- Calculus: Early TranscendentalsCalculusISBN:9781285741550Author:James StewartPublisher:Cengage LearningThomas' Calculus (14th Edition)CalculusISBN:9780134438986Author:Joel R. Hass, Christopher E. Heil, Maurice D. WeirPublisher:PEARSONCalculus: Early Transcendentals (3rd Edition)CalculusISBN:9780134763644Author:William L. Briggs, Lyle Cochran, Bernard Gillett, Eric SchulzPublisher:PEARSON
- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning