George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%. Considering the above ideas, Identify 1. The Decision Variable 2. The objective Function 3. The Constraint Function 4. Non Negativity 5. Develop complete model of the above idea 6. Calculate the required quantities, and total costs using the simultaneous equation methods.Calculate the required quantities, total costs , and differences between actual and originally set budget, and differences between used and unused budget using the graphical methods
George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%. Considering the above ideas, Identify 1. The Decision Variable 2. The objective Function 3. The Constraint Function 4. Non Negativity 5. Develop complete model of the above idea 6. Calculate the required quantities, and total costs using the simultaneous equation methods.Calculate the required quantities, total costs , and differences between actual and originally set budget, and differences between used and unused budget using the graphical methods
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