A pension fund manager decides to invest a total of at most, Ask an Expert

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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 7% annual interest. He plans to invest at least ?$5 million in bonds and at least ?$10 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?

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Financial Management, Finance

Category:- Financial Management
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