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Aug 25th, 2004, 11:00 PM
#1
Thread Starter
Addicted Member
Need help!
Can anyone tell me the equation that I should be using for the problem below...
Financial Planning
A retired couple has $40,000 to invest. As their financial consultant, you recommend they invest some money in Treasury bills that yield 6%, some money in corporate bonds that yield 8%, and some money in junk bonds that yield 10%. Prepare a table showing the
various ways the couple can achieve the following goals:
a. They want 42500 per year in income.
b. They want 43000 per year in income.
c. They want $3500 per year in income.
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Aug 26th, 2004, 12:26 AM
#2
do you mean if they invest in all three, or just one at a time?
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Aug 28th, 2004, 09:05 PM
#3
Conquistador
Let x = amount invested in treasury bills
Let y = amount invested in corporate bonds
Let z = amound invested in junk bonds
for (a)
2500 = 0.06x + 0.08y + 0.1z
for (b)
3000 = 0.06x + 0.08y + 0.1z
for (c)
3500 = 0.06x + 0.08y + 0.1z
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Aug 28th, 2004, 11:28 PM
#4
Conquistador
Code:
Bills Bonds Junk Income
==================================================
37512 0 2488 2499.52
37511 0 2489 2499.56
37511 1 2488 2499.54
37511 2 2487 2499.52
37510 0 2490 2499.6
37510 1 2489 2499.58
37510 2 2488 2499.56
37510 3 2487 2499.54
37510 4 2486 2499.52
37509 0 2490 2499.54
37509 0 2491 2499.64
37509 1 2489 2499.52
37509 1 2490 2499.62
37509 2 2489 2499.6
37509 3 2488 2499.58
37509 4 2487 2499.56
37509 5 2486 2499.54
37509 6 2485 2499.52
37508 0 2491 2499.58
37508 0 2492 2499.68
37508 1 2490 2499.56
37508 1 2491 2499.66
37508 2 2489 2499.54
37508 2 2490 2499.64
37508 3 2488 2499.52
37508 3 2489 2499.62
37508 4 2488 2499.6
37508 5 2487 2499.58
37508 6 2486 2499.56
37508 7 2485 2499.54
37508 8 2484 2499.52
37507 0 2491 2499.52
37507 0 2492 2499.62
37507 0 2493 2499.72
37507 1 2491 2499.6
37507 1 2492 2499.7
37507 2 2490 2499.58
37507 2 2491 2499.68
37507 3 2489 2499.56
37507 3 2490 2499.66
37507 4 2488 2499.54
37507 4 2489 2499.64
37507 5 2487 2499.52
37507 5 2488 2499.62
37507 6 2487 2499.6
37507 7 2486 2499.58
37507 8 2485 2499.56
37507 9 2484 2499.54
37507 10 2483 2499.52
37506 0 2492 2499.56
37506 0 2493 2499.66
37506 0 2494 2499.76
37506 1 2491 2499.54
37506 1 2492 2499.64
37506 1 2493 2499.74
37506 2 2490 2499.52
37506 2 2491 2499.62
37506 2 2492 2499.72
37506 3 2490 2499.6
37506 3 2491 2499.7
37506 4 2489 2499.58
37506 4 2490 2499.68
37506 5 2488 2499.56
37506 5 2489 2499.66
37506 6 2487 2499.54
37506 6 2488 2499.64
37506 7 2486 2499.52
37506 7 2487 2499.62
37506 8 2486 2499.6
37506 9 2485 2499.58
37506 10 2484 2499.56
37506 11 2483 2499.54
37506 12 2482 2499.52
37505 0 2493 2499.6
37505 0 2494 2499.7
37505 0 2495 2499.8
37505 1 2492 2499.58
37505 1 2493 2499.68
37505 1 2494 2499.78
37505 2 2491 2499.56
37505 2 2492 2499.66
37505 2 2493 2499.76
37505 3 2490 2499.54
37505 3 2491 2499.64
37505 3 2492 2499.74
37505 4 2489 2499.52
37505 4 2490 2499.62
37505 4 2491 2499.72
37505 5 2489 2499.6
37505 5 2490 2499.7
37505 6 2488 2499.58
37505 6 2489 2499.68
37505 7 2487 2499.56
37505 7 2488 2499.66
37505 8 2486 2499.54
37505 8 2487 2499.64
37505 9 2485 2499.52
37505 9 2486 2499.62
37505 10 2485 2499.6
37505 11 2484 2499.58
37505 12 2483 2499.56
Obviously, there are heaps of possibilities. Lots less practical than you'd think.
Also, given that you don't need to invest all of your money, it doesn't make the list any smaller 
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