Solve the problem.
-Zach is planning to invest up to $\$ 45,000$ in corporate and municipal bonds. The least he will invest in corporate bonds is $\$ 9000$ and he does not want to invest more than $\$ 30,000$ in corporate bonds. He also does not want to invest more than $\$ 31,447$ in municipal bonds. The interest is $8.4 \%$ on corporate bonds and $6.5 \%$ on municipal bonds. This is simple interest for one year. What is the maximum income?
A) $\$ 18,495$
B) $\$ 33,495$
C) $\$ 3495$
D) $\$ 16,545$

Question

Quizplus · Accepted Answer

To maximize income, Zach should invest the maximum allowed in corporate bonds (\$30,000) and the remaining in municipal bonds (\$15,000). The income from corporate bonds is $30,000 \times 0.084 = \$2,520$ and from municipal bonds is $15,000 \times 0.065 = \$975$. Total income is $2,520 + 975 = \$3,495$.

Solve the Problem $45,000\$ 45,000$45,000 In Corporate and Municipal Bonds $9000\$ 9000$9000

Solve the Problem $\$ 45,000$ In Corporate and Municipal Bonds $\$ 9000$