Afinancier plans to invest up to $400,000 in two projects. project a yields a return of 11% on the investment of x dollars, whereas project b yields a return of 15% on the investment of y dollars. because the investment in project b is riskier than the investment in project a, the financier has decided that the investment in project b should not exceed 35% of the total investment. how much should she invest in each project to maximize the return on her investment p in dollars?

Profit = $  49,600.

Explanation:

Given data:

Total investment $400,000

First, A + B = $400,000, since total money to invest $400,000.

from data given we  have

Secondly, your revenue equation would be 1.1x + 1.15y = R

Since you earn the most from the B investment, use the max of 35% of 400,000 for y:

35% of 400,000 = 140,000 = y ;

400,000 - 140,000 = 260,000 = x

from revenue equation we have

1.11(260,000) + 1.15(140,000) = 449,600 = R

Profit = revenue - investment = 449,600 - 400,000 = 49,600.

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