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Investor Matt has $83,000 to invest in a CD and a mutua The CD yields 4% and the mutual fund yields an average 8.5%. The mutual fund requires a minimum investment $10,000, and Matt requires that at least 2 times as much be invested in the CD as in the mutual fund. You must in these bonds to maximize his return

Investor Matt has $83,000 to invest in a CD and a mutua The CD yields 4% and the mutual fund yields an average 8.5%. The mutual fund requires a minimum investment $10,000, and Matt requires that at least 2 times as much be invested in the CD as in the mutual fund. You must in these bonds to maximize his return

College Algebra (MindTap Course List)
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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Investor Matt has $83,000 to invest in a CD and a mutual fund. The CD yields 4% and the mutual fund yields an average of 8.5%. The mutual fund requires a minimum investment of $10,000, and Matt requires that at least 2 times as much money be invested in the CD as in the mutual fund. 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 the CD = Y dollars invested in the mutual fund - Check all of the problem constraints. Note: The non-negative constraints are not included here. y>2 y 10000 x+y≤ 83000 x > 10000 0.04x +0.085y ≤ 83000 0.04x+0.085y > 10000 x+y 10000 y> 10000 x > 2y
Transcribed Image Text:Investor Matt has $83,000 to invest in a CD and a mutual fund. The CD yields 4% and the mutual fund yields an average of 8.5%. The mutual fund requires a minimum investment of $10,000, and Matt requires that at least 2 times as much money be invested in the CD as in the mutual fund. 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 the CD = Y dollars invested in the mutual fund - Check all of the problem constraints. Note: The non-negative constraints are not included here. y>2 y 10000 x+y≤ 83000 x > 10000 0.04x +0.085y ≤ 83000 0.04x+0.085y > 10000 x+y 10000 y> 10000 x > 2y
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