They also are looking to add to their savings by investing in two different types of bonds, a…

They also are looking to add to their savings by investing in two different types of bonds, a conservative bond that yields 5% per year and an aggressive bond that yields 10% per year. They have set aside a total of $60,000 to work with. It is decided that they should invest no more than 25% of their money in the aggressive market and no less than 50% in the conservative bonds and that their total investment should be at least $30,000.

a) How much should be invested in each type of bond to maximize their return?

b) If they must pay a 1% fee on the total conservative bond investment and 0.8% fee on the aggressive bonds, what combination of investments would minimize their fees yet still fall within the constraints listed in paragraph 2 of this problem?