- $ Z=0.1 x+0.09 y $
- $ Z_A=0.1 \times 20,000+0.09 \times 10,000=2900 $
- $ Z_B=0.1 \times 40,000+0.09 \times 10,000=4900 $
- $ Z_C=0.1 \times 25000+0.09 \times 25,000=4750 $
- $ Z_D=0.1 \times 20,000+0.09 \times 20,000=3800 $
- $ \therefore Z_{\text {max }}=4900$ at $B(40,000,10,000)$
- Hence, the retired person should invest $RS.$ 40,000 in bond $A$ and $Rs. 10,000$ in bond $B$ to get maximum returns $Rs. 4900$ on his investment.