A trust account manager has $220,000 to be invested. The investment choices have current yields of 8%,
Question:
A trust account manager has $220,000 to be invested. The investment choices have current yields of 8%, 7%, and 10%. Suppose that the investment goal is to earn interest of $16,600, and risk factors make it prudent to invest some money in all three investments.
(a) Find a general description for the amounts invested at the three rates.
(b) If $10,000 is invested at 10%, how much will be invested at each of the other rates? What if $30,000 is invested at 10%?
(c) What is the minimum amount that will be invested at 7%, and in this case how much will be invested at the other rates?
(d) What is the maximum amount that will be invested at 7%, and in this case how much will be invested at the other rates?
Step by Step Answer:
a Let x 8 investment y 7 investment and z 10 investment x y z 220000 Total Investment 0...View the full answer
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
