Carletta has $ 10 , 000 to invest. As her financial consultant, you recommend that she invest in Treasury bills that yield 6 % , Treasury bonds that yield 7 % , and corporate bonds that yield 8 % . Carletta wants to have an annual income of $ 680 , and the amount invested in corporate bonds must be half that invested in Treasury bills. Find the amount in each investment.
Carletta has $ 10 , 000 to invest. As her financial consultant, you recommend that she invest in Treasury bills that yield 6 % , Treasury bonds that yield 7 % , and corporate bonds that yield 8 % . Carletta wants to have an annual income of $ 680 , and the amount invested in corporate bonds must be half that invested in Treasury bills. Find the amount in each investment.
Solution Summary: The author explains that Carletta has 10, 000 to invest in Treasury bills, Treasury bonds, and corporate bonds.
To find: Carletta has to invest. As her financial consultant, you recommend that she invest in Treasury bills that yield , Treasury bonds that yield , and corporate bonds that yield . Carletta wants to have an annual income of , and the amount invested in corporate bonds must be half that invested in Treasury bills. Find the amount in each investment.
Expert Solution & Answer
Answer to Problem 79AYU
Solution:
The amount in treasury bills is , in treasury bonds is and in corporate bonds is .
Explanation of Solution
Given:
Carletta has to invest. As her financial consultant, you recommend that she invest in Treasury bills that yield , Treasury bonds that yield , and corporate bonds that yield . Carletta wants to have an annual income of , and the amount invested in corporate bonds must be half that invested in Treasury bills.
Calculation:
Let be treasury bills, be treasury bonds and be corporate bonds. We have
So we have
–––––1
Multiplying by 100 we have
–––––2
We have
Therefore, the amount in treasury bills is , in treasury bonds is and in corporate bonds is .
Calculus, Single Variable: Early Transcendentals (3rd Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY