An investor has $450,000 to invest in two types of investments. Type A pays 6% annually and type B pays 7% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-third of the total portfolio is to be allocated to type A investments and at least one-third of the portfolio is to be allocated to type B investments. What is the optimal amount that should be invested in each investment?
A. $160,000 in type A (6%), $290,000 in type B (7%)
B. $0 in type A (6%), $450,000 in type B (7%)
C. $450,000 in type A (6%), $0 in type B (7%)
D. $300,000 in type A (6%), $150,000 in type B (7%)
E. $150,000 in type A (6%), $300,000 in type B (7%)
Answer: E
Mathematics
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