00:01
In this problem, it is given that a retired couple have rm 30 ,000 to be invested in fixed income security.
00:14
And a broker recommends investing in two bonds.
00:21
One is triple a bond that is paying 8 percentage and the other is triple b bond paying 20.
00:31
12 percentage and after consideration the couple decides to invest at least rm 6 ,000 in triple a bond and at most rm 12 ,000 in triple b bond and also they want the amount invested in triple a bonds must be greater than or equal to the amount invested in triple a bonds must be greater than or equal to the amount invested in triple b bond.
01:07
We are asked to determine what must be recommended by the broker so that the couple can maximize the return of their investment.
01:19
So here let x amount be invested in triple a bond and rmi amount be invested in triple b bond.
01:31
Then the interest the total interest will be let it be said and that will be x times the rate of interest of triple a bond which is 0 .08 plus y times the rate of interest on triple b bond is 0 .12.
01:51
So we have the objective function is said is equal to 0 .08x plus 0 .12.
01:57
Why we need to maximize this interest subject to certain constraints so the first constraint is that at least 6 ,000 malaysian riggets must be invested in triple a bond so that means x must be greater than or equal to 6 ,000 similarly amount invested in triple b bond must be at most rm 12 ,000.
02:30
So, y must be less than or equal to 12 ,000.
02:36
Then the total amount available is rm 30 ,000...