7. A person wants to invest at most Rs. 18,000 in Bonds A and B. According to the rules, he has to
invest at least Rs. 4,000 in Bond A and at least Rs. 5,000 in Bond B. If the rate of interest on bond A is
9 % per annum and the rate of interest on bond B is 11 % per annum , how much money should he
invest to earn maximum yearly income ?
Let person invest Rs. x in bond A and Rs. y in bond B.
Then, interest on two bonds is , that is,
Bond A =
and
Bond B =
Total annual income from interest =
Also, Since he should at least invest Rs. 4000 in bond A and Rs.5000 in bond B .
∴x≥4000 and y≥5000
Again, since total investment is (x+y) bonds should not exceed Rs. 18000
∴x+y≤18000
So, the L.P. problem is
Max Z=0.09x+0.11y
subject to constraints
x+y≤18000
x≥4000
y≥5000
x≥0 ,y≥0