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 10% on the investment of x dollars, whereas Project B yields a return of 13% 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 40% of the total investment. How much should she invest in each project to maximize the return on her investment P in dollars?
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 10% on the investment of x dollars, whereas Project B yields a return of 13% 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 40% of the total investment. How much should she invest in each project to maximize the return on her investment P in dollars?
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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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 10% on the investment of x dollars, whereas Project B yields a return of 13% 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 40% 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 constraints ?
amount available for investment?
allocation of funds?
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