Question

Shalmali wants to invest ₹50,000 in saving certificates and PPF. She wants to invest at least ₹15.000 in saving certificates and at least ₹20.000 in PPF. The rate of interest on saving certificates is 8% p.a. and that on PPF is 9% p.a. Formulate the above problem as LPP to determine maximum yearly income.

Answer 1

better to invest 35,000 in PPF, then she will get 3150 as interest.
15000 in savings certificate,then she will get
1200 as interest.
in total 4350 she will get.

Answer 2

Answer:

Rs 4350

Step-by-step explanation:

Saving Certificate S ≥ 15000

PPF                         P ≥ 20000

S + P = 50000

P = 50000 - S

=> P ≤ 50000 - 15000

=> P ≤ 35000

Interest on saving certificate = S * 8 /100 = 0.08S

Interest on PPF = P * 9 /100 = 0.09 P

Interest = 0.08 S + 0.09P

as Interest rate on PPF is more so maximum investment should be in PPF

PP ≤ 35000

Max PPF  investment = Rs 35000

Interest on PPF = 0.09* 35000 = Rs 3150

Interest on Saving Certificate = 0.08 * 15000 = Rs 1200

Total interest = 3150 + 1200 = Rs 4350