Natsano Has at Most $60,000 to Invest in the Common

question 99

Essay

Natsano has at most $60,000 to invest in the common stocks of two companies. He estimates that an investment in company A will yield a return of 30%, whereas an investment in company B, which he feels is a riskier investment, will yield a return of 40%.
If he decides that his investment in the stocks of company A is to exceed his investment in the stocks of company B by at least $30,000, determine how much he should invest in the stocks of each company in order to maximize the returns on his investment.
Investment in company A $ __________.
Investment in company B $ __________.

---

Definitions:

QBO

Stands for QuickBooks Online, a cloud-based accounting software used for business accounting and financial management.

Undeposited Funds

Funds that have been received but not yet deposited into the bank account.

Receive Payment

The process of collecting money from customers in exchange for goods or services provided.

Online Bank Transfer

A method used to move money electronically from one bank account to another through internet banking services.