Answered

Dive into the world of knowledge and get your queries resolved at IDNLearn.com. Join our knowledgeable community to find the answers you need for any topic or issue.

Shoemacher has $20,000 to invest in two types of mutual funds: a High-Yield Fund and an Equity Fund. The High-Yield fund has an annual yield of 12%, while the Equity fund earns 8%. He would like to invest at least $3000 in the High-Yield fund and at least $4000 in the Equity fund. How much should he invest in each to maximize his annual yield, and what is the maximum yield?

Sagot :

Jepessoaidn

Answer:

you have to maximize the following equation: 0.12A + 0.08B

Where A is the amount of money invested in the high yield fund

Where B is the amount of money invested in the equity fund

A + B = 20,000

A ≥ 3,000

B ≥ 4,000

Using Solver, the optimal solution is to invest $16,000 in A and $4,000 in B. Maximum annual yield = $2,240

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to assisting you again.