


Let the person invest Rs x in bond A and Rs. y in bond B.
Now, the interest on bond A = (x*1*10)/100 = 10x/100
and the interest on bond B = (y*1*9)/100 = 9y/100
Total annual income from interest = 10x/100 + 9y/100
= 0.1x + 0.09y
Now, given he decides to invest at least 20000 in bond A and at least 10000 in bond B
So, x ≥ 20000 and y ≥ 10000
Again, total investment is x + y and it should not exceed 50000
So, x + y ≤ 50000
Now, the LPP problem is,
Max z = 0.1x + 0.09y
subject to constraints
x + y ≤ 50000
x ≥ 20000, y ≥ 10000
x ≥ y
Now,
(x, y) z = 0.1x + 0.09y
(20000, 10000) 2950
(40000, 10000) 4900
(25000, 25000) 4750
So, when A invest Rs 40000 and B invest Rs 10000, his return is maximum.
