I'm doing an optimisation problem but don't understand what the terms mean.
Suppose someone wants to invest $110,000.
They have 4 choices as to what they invest their money into:
- municipal bond yielding 6%,
- an industrial bond yielding 13%,
- Treasury bills at 10%,
- certificates of deposit (CDs) at 9%.
I want to maximise their annual interest (in dollars)
There are some constraints (which I haven't typed) but I just want to know what these terms mean. Say, they invest $27,500 on each one, what would their annual interest be (in dollars)?