An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 4%, on A bond
s 6%, and on B bonds 11%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions? A. The total investment is $26,000, and the investor wants an annual return of $1,620 on the three investments.
B. The values in part A are changed to $38,000 and $2,360, respectively
A. The client should invest $(?) in AAA bonds, $(?)in A bonds, and $(?)in B bonds.
First we need to know the point slope form. It is y - y1 = m(x - x1). In the y1 and x1 spots, you just plug in any coordinate on the line.
m would be the slope which we already know as 5/3.
We are given the coordinate point (0,3) as a point on the line. This is also what we are going to plug into the equation. 0 will be x1 and 3 will be y1.
Our equation should then look like after plugged in as....
y - 3 = 5/3(x)
x is by itself because subtracting or adding by 0 yield the original number.
