Question
A pension fund manager decides to invest a total of at most $45 million in U.S....
A pension fund manager decides to invest a total of at most $45 million in U.S. Treasury bonds paying 5% 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 million dollars, while the fee for mutual funds is $200 per million. The fund manager is allowed to spend no more than $ 8000 on fees. How much should be invested in each to maximize annual interest? What is the maximum annual interest?
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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