You have $12,000 to invest, and three different funds from which to choose. The municipal bond fund has a 4% return, the local bank's CDs have a 1.5% return, and the equity account has an expected (hoped-for) 4.5% return. To minimize risk, you decide not to invest any more than $3, 500 in the equity account, and at least three times as much in the CD fund as in the municipal bond fund. Assuming the year-end yields are as expected and not figuring in any tax breaks associated with municipal bonds, How many dollars in the municipal bond fund, the CD fund, and the equity fund will maximize your profit subject to the stipulated constraints? What is the profit associated with this maximal solution? Municipal bond interest income is generally free from federal income tax (and, in some cases, free from state income tax as well). If you are in the 28% bracket, factoring in the federal tax break associated with municipal bonds: How many dollars in the municipal bond fund, the CD fund, and the equity fund will maximize your post-tax profit subject to the stipulated constraints? What is the post-tax profit associated with this maximal solution