Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A retired person wants to invest up to an amount of Rs. 30,000 in the fixed income securities. His broker recommends investing in two bonds-

A retired person wants to invest up to an amount of Rs. 30,000 in the fixed income securities. His broker recommends investing in two bonds- bond A yielding 7% per annum and bond B yielding 10% per annum. After some consideration the person decides to invest at the most Rs. 12,000 in bond B and at least Rs. 6,000 in bond A. He also wants that the amount invested in bond A must be at least equal to the amount invested in bond B. What should the broker recommend if the investor wants to maximise his return on investment? Formulate this as a linear programming problem and solve graphically.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Prealgebra

Authors: Elayn Martin Gay

7th edition

321955048, 978-0321955043

More Books

Students also viewed these Mathematics questions

Question

\f

Answered: 1 week ago