Solve the problem.A broker has up to $20,000 to invest. He can purchase municipal bonds yielding 8% of the amount invested and Treasury bonds yielding 10% of the amount invested. The broker's client insists that no more than $8000 be invested in municipal bonds and that at least three times as much be invested in municipal bonds as Treasury bonds. How should the broker invest her client's money in order to maximize the yield?

Question

What will be an ideal response?

Answer 1

Invest $2667 in treasury bonds and $8000 in municipal bonds.