person wants to invest rs 140000 in two types of bond the annual return is 12percentage on bond a and 16%on bond b one of the condition requires that investment in bond b cant be more than 40% of the investment in bond a what is the maximum return he can get per year
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5
Let the value of bond a = x
Bond b should not be more than 40% of bond a thus :
Bond b = 0.4x
0.4x + x = 1.4 x = rs 140000
1.4x = 140000
x = rs 100000
Bond a = Rs 100000
Bond b = Rs 40000
Return on a : 12/100 × 100000 = 12000
Return on b: 16/100 × 40000 = 6400
Total return = 12000 + 6400 = 18400
Rs 18400
Bond b should not be more than 40% of bond a thus :
Bond b = 0.4x
0.4x + x = 1.4 x = rs 140000
1.4x = 140000
x = rs 100000
Bond a = Rs 100000
Bond b = Rs 40000
Return on a : 12/100 × 100000 = 12000
Return on b: 16/100 × 40000 = 6400
Total return = 12000 + 6400 = 18400
Rs 18400
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3
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