What is the maximum interest she can earn

Reference no: EM13272308

Finance Virginia Keleske has decided to invest a $100,000 inheritance in government securities that earn 7% per year, municipal bonds that earn 6% per year, and mutual funds that earn an average of 10% per year. She will spend at least $40,000 on government securities, and she wants at least half the inheritance to go to bonds and mutual funds. Government securities have an initial fee of 2%, municipal bonds an initial fee of 1%, and mutual funds an initial fee of 3%. Virginia has $2400 available to pay initial fees. How much money should go into each type of investment to maximize the interest while meeting the constraints? What is the maximum interest she can earn?

Reference no: EM13272308

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