An investment broker wants to invest up to $20,000. She can invest in two mutual funds based on their yearly average return for the 5 years ending December 31, 2009: the Franklin Natural Resources fund yielding 10% and the Oppenheimer Developing Markets A fund yielding 15%. She wants to invest at least $5000 in the Franklin Natural Resources fund and no more than $8000 in the Oppenheimer Developing Markets A fund. How much should she invest in each type of fund to maximize her return?
An investment broker wants to invest up to $20,000. She can invest in two mutual funds based on their yearly average return for the 5 years ending December 31, 2009: the Franklin Natural Resources fund yielding 10% and the Oppenheimer Developing Markets A fund yielding 15%. She wants to invest at least $5000 in the Franklin Natural Resources fund and no more than $8000 in the Oppenheimer Developing Markets A fund. How much should she invest in each type of fund to maximize her return?
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Question
An investment broker wants to invest
up to $20,000. She can invest in two mutual funds based on
their yearly average return for the 5 years ending December 31,
2009: the Franklin Natural Resources fund yielding 10% and
the Oppenheimer Developing Markets A fund yielding 15%.
She wants to invest at least $5000 in the Franklin Natural
Resources fund and no more than $8000 in the Oppenheimer
Developing Markets A fund. How much should she invest in
each type of fund to maximize her return?
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