Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 14% 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 to maximize the return on her investment P in dollars?MaximizeP= subject to the constraintsamount available for investment allocation of funds x ≥ 0 y ≥ 0
Formulate but do not solve the following exercise as a linear programming problem. A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 14% 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 to maximize the return on her investment P in dollars?MaximizeP= subject to the constraintsamount available for investment allocation of funds x ≥ 0 y ≥ 0
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 33E
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Formulate but do not solve the following exercise as a linear programming problem.
A financier plans to invest up to $400,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 14% 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 to maximize the return on her investment P in dollars?
Maximize
P
=
subject to the constraints
amount available for investment
allocation of funds
x ≥ 0
y ≥ 0
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