Nancy is planning to invest up to $100,000 in corporate and municipal bonds. The least she will invest in corporate bonds is $10,000 and she does not want to invest more than 40,000 in corporate bonds. She also does not want to invest more than 45,000 in municipal bonds. The interest is 6.3% on corporate bonds and 5.9% on municipal bonds. This is simple, annual interest. Nancy wants to maximize the interest earned from her investment after one year. So she is trying to formulate her problem as an LP problem. How many constraints will she need?
Nancy is planning to invest up to $100,000 in corporate and municipal bonds. The least she will invest in corporate bonds is $10,000 and she does not want to invest more than 40,000 in corporate bonds. She also does not want to invest more than 45,000 in municipal bonds. The interest is 6.3% on corporate bonds and 5.9% on municipal bonds. This is simple, annual interest. Nancy wants to maximize the interest earned from her investment after one year. So she is trying to formulate her problem as an LP problem. How many constraints will she need?
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.CR: Review Problem Set
Problem 50CR
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Nancy is planning to invest up to $100,000 in corporate and municipal bonds. The least she will invest in corporate bonds is $10,000 and she does not want to invest more than 40,000 in corporate bonds. She also does not want to invest more than 45,000 in municipal bonds. The interest is 6.3% on corporate bonds and 5.9% on municipal bonds. This is simple, annual interest. Nancy wants to maximize the interest earned from her investment after one year. So she is trying to formulate her problem as an LP problem. How many constraints will she need?
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