Afinancier plans to invest up to $600,000 in two projects. project a yields a return of 8% on the investment, whereas project b yields a return of 16% on the investment. because the investment in project b is riskier than the investment in project a, she has decided that the investment in project b should not exceed 35% of the total investment. how much should the financier invest in each project in order to maximize the return on her investment?

To maximize return, A with 390000 and B with 210000

Step-by-step explanation:

Given that a financier plans to invest up to $600,000 in two projects

Let x be the amount invested in 8% and y in 16%

Other information given is the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment.

i,.e.

Also

The objective is to maximize interest function

subject to the above two constraints.

The corner points would be P(390000,210000) or Q(600000,0)

Calculate Z for these two points

Profit at P =

Profit at Q =

So to maximize return, A with 390000 and B with 210000

sine

step-by-step explanation: