Amount the should be invested in treasury bonds

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Reference no: EM13810277

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 9% 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?

The amount the 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 $___.

Reference no: EM13810277

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