Question
A pension fund manager decides to invest a total of at most $35 million in U.S. Treasury bonds paying 6% annual interest and in mutual
A pension fund manager decides to invest a total of at most $35 million in U.S. Treasury bonds paying 6% annual interest and in mutual funds paying 8% annual interest. He plans to invest at least $5 million in bonds and at least $15 million in mutual funds. Bonds have an initial fee of$100 per milliondollars, while the fee for mutual funds is$200 per million. The fund manager is allowed to spend no more than $6000 on fees. How much should be invested in each to maximize annualinterest? What is the maximum annualinterest?
The amount that should be invested in Treasury bonds is $? million and the amount that should be invested in mutual funds is $? million.
The maximum annual interest is $?
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