Financial Planning Carletta has 21000 dollars to invest. As her financial consul

Question

Financial Planning Carletta has 21000 dollars to invest. As her financial consultant, you recommend that she invest Treasury that yield 7%, Treasury Bonds that yield 8%, and corporate bonds that yield 9% Carletta wants to have an annual income of 1645 dollars, and the amount invested in corporate bonds must be half that invested in Treasury Bills. Find the amount she should place in each investment. Carletta should invest dollars in Treasury Bonds, and dollars in Treasury Bills, dollars in corporate bonds to attain 1645 dollars annual income.

Explanation / Answer

X = amount invested in Treasury bills. ( 7%)

Y = amount invested in Treasury bonds ( 8%)

Z = Corporate bounds ( 0.09)

2 Z = X

    2Z + Y + Z = 21,000

    Y+ 3Z = 21,000

     2Z( 0.07) + ( 21,000-3Z) 0.08+ Z( 0.09) = 1645

    0.14Z +1680- 0.24Z + 0.09Z = 680

                  - 0.01 Z = -35

                   Z = 3500

                    X = 7000

                    Y = 10500

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