How do you set up this Linear Programming Problem?
November 3rd, 2008
ccc asked:
A couple with $20,000 decides to invest in two types of bonds: those yielding 5% and those yielding 12%. The amount invested in the higher yield bonds will not exceed the amount invested in the lower yield bonds. Three times the low-risk investment plus the high-risk investment should not exceed $50,000. What is the optimal investment strategy? What is the maximum annual return?
Gaige
A couple with $20,000 decides to invest in two types of bonds: those yielding 5% and those yielding 12%. The amount invested in the higher yield bonds will not exceed the amount invested in the lower yield bonds. Three times the low-risk investment plus the high-risk investment should not exceed $50,000. What is the optimal investment strategy? What is the maximum annual return?
Gaige