An investor has $749,000 to invest in bonds. Bond A yields an average of 3% and the bond B yields 8%. The investor requires that at least 5 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. This can be set up as a linear programming problem. Introduce the decision variables: x = dollars invested in bond A y = dollars invested in bond B Compute x + y $ __________. Round to the nearest cent.
An investor has $749,000 to invest in bonds. Bond A yields an average of 3% and the bond B yields 8%. The investor requires that at least 5 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. This can be set up as a linear programming problem. Introduce the decision variables: x = dollars invested in bond A y = dollars invested in bond B Compute x + y $ __________. Round to the nearest cent.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 81P
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Question
An investor has $749,000 to invest in bonds. Bond A yields an average of 3% and the bond B yields 8%. The investor requires that at least 5 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. This can be set up as a linear programming problem. Introduce the decision variables:
x = dollars invested in bond A
y = dollars invested in bond B
Compute x + y
$ __________. Round to the nearest cent.
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