A financier plans to invest up to $600,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas project B yields a return of 15% on the investment of y dollars. Because the investment in project B is riskier than the investment in project A, the financier has decided that the investment in project B should not exceed 35% of the total investment. How much should she invest in each project in order to maximize the return on her investment, P?

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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Formulate but do not solve the following exercise as a linear programming problem.
A financier plans to invest up to $600,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas project B yields a return of 15% on the investment of y dollars.
Because the investment in project B is riskier than the investment in project A, the financier has decided that the investment in project B should not exceed 35% of the total investment. How much
should she invest in each project in order to maximize the return on her investment, P?
P = 0.09x + 0.15y
amount available for investment x+y< 600000
Maximize
allocation of funds
x ≥ 0
y ≥ 0
subject to the constraints
Transcribed Image Text:Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $600,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas project B yields a return of 15% on the investment of y dollars. Because the investment in project B is riskier than the investment in project A, the financier has decided that the investment in project B should not exceed 35% of the total investment. How much should she invest in each project in order to maximize the return on her investment, P? P = 0.09x + 0.15y amount available for investment x+y< 600000 Maximize allocation of funds x ≥ 0 y ≥ 0 subject to the constraints
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