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) \(\$ 11,205\)

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.

Maximizing Profit

The process by which a company determines the price and output level that generates the maximum amount of profit.

Price

The cost expected, compelled, or remitted in reimbursement for something.

Marginal Revenue

The additional earnings received from the sale of an extra unit of a good or service.