Solve the Linear Programming Problem $\$ 40,000$ In Corporate and Municipal Bonds

question 16

Multiple Choice

Solve the linear programming problem.
-Zach is planning to invest up to $\$ 40,000$ in corporate and municipal bonds. The least he will invest in corporate bonds is $\$ 8000$ and he does not want to invest more than $\$ 25,000$ in corporate bonds. He also does not want to invest more than $\$ 33,621$ in municipal bonds. The interest is $8.6 \%$ on corporate bonds and $6.3 \%$ on municipal bonds. This is simple interest for one year. What is the maximum income?

• A) \(\$ 28,095\)
• B) \(\$ 18,095\)
• C) \(\$ 3095\)
• D) \(\$ 11,205\)

---

Definitions:

Single-Trial Learning

The process by which an association or response is learned in one exposure to a stimulus.

Tolman

Edwin C. Tolman was an American psychologist who made significant contributions to the study of learning and motivation in what came to be known as cognitive maps.

Demand

The desire or need for products, services, or resources combined with the ability and willingness to pay for them.

Food Deprivation

A condition resulting from lack of food intake, leading to physical and psychological effects and often used in experiments to motivate behaviors in animals.