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Anil wants to invest at the most Rs.1200...

Anil wants to invest at the most Rs.12000 in bonds. A and B. According to rules, he has to invest at least Rs.2000 in Bond A is `8%` per annum and on Bond B, it is `10%` per annum, how should he invest his money for maximum interest ? Solve the problem graphically.

A

₹ 10000 and ₹ 2000

B

₹ 2000 and ₹ 10000

C

₹ 6000 and ₹ 6000

D

None of these

Text Solution

Verified by Experts

The correct Answer is:
B
Let the investment in bonds A and B are x and y resepectively .
Then ,our problem is to
Maximies Z = 0.8 x + 0.10 y.
Subject to constraints , ` x+y le 12000 , x ge le 2000 y ge 4000 , x,y ge 0 `

The feasible region is ABCA. Now, the values of Z the corner points are given by

From the above table, we see that the maximum value of Z is 1160 which occurs at the point (2000, 10000). Hence, to maximise the interest ₹ 2000 and f ₹ 10000 must be invested in bond A and B, respectively
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