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:A couple wants to invest up to $20000. They can purchase a type A bond yielding 8% return and a type B bond yielding a 8.25% return on the amount invested. They also want to invest at least as much in the type A bond as in the type B bond. They will also invest at least $10000 in type A and no more than $13000 in type B bond. How much should they invest in each type of bond to maximize their return? Let x be the amount invested in type A bond and y the amount invested in type B bond. a) Write the objective function to be maximized. P = b) The feasible region has 3 corner points. List the three Corner points: c) Determine the amount to be invested in each bond to maximize the return and determine the maximum return: Amount to be invested in type A bonds: $ Amount to be invested in type B bonds: $ Maximum return is: $

:A couple wants to invest up to $20000. They can purchase a type A bond yielding 8% return and a type B bond yielding a 8.25% return on the amount invested. They also want to invest at least as much in the type A bond as in the type B bond. They will also invest at least $10000 in type A and no more than $13000 in type B bond. How much should they invest in each type of bond to maximize their return? Let x be the amount invested in type A bond and y the amount invested in type B bond. a) Write the objective function to be maximized. P = b) The feasible region has 3 corner points. List the three Corner points: c) Determine the amount to be invested in each bond to maximize the return and determine the maximum return: Amount to be invested in type A bonds: $ Amount to be invested in type B bonds: $ Maximum return is: $

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 97P
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A couple wants to invest up to $20000. They can purchase a type A bond yielding 8% return and a type B bond yielding a 8.25% return on the amount invested. They also want to invest at least as much in the type A bond as in the type B bond. They will also invest at least $10000 in type A and no more than $13000 in type B bond. How much should they invest in each type of bond to maximize their return? Let x be the amount invested in type A bond and y the amount invested in type B bond. a) Write the objective function to be maximized. P = b) The feasible region has 3 corner points. List the three Corner points: c) Determine the amount to be invested in each bond to maximize the return and determine the maximum return: Amount to be invested in type A bonds: $ Amount to be invested in type B bonds: $ Maximum return is: $
Transcribed Image Text:A couple wants to invest up to $20000. They can purchase a type A bond yielding 8% return and a type B bond yielding a 8.25% return on the amount invested. They also want to invest at least as much in the type A bond as in the type B bond. They will also invest at least $10000 in type A and no more than $13000 in type B bond. How much should they invest in each type of bond to maximize their return? Let x be the amount invested in type A bond and y the amount invested in type B bond. a) Write the objective function to be maximized. P = b) The feasible region has 3 corner points. List the three Corner points: c) Determine the amount to be invested in each bond to maximize the return and determine the maximum return: Amount to be invested in type A bonds: $ Amount to be invested in type B bonds: $ Maximum return is: $
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