x= amount invested in A bonds
y= amount invested in B bonds
x+y≤6000
0≤y≤4000
x≥1500
y≤21xOur linear optimization problem is:
Maximize z=0.08x+0.1y subject to
x+y≤6000
0≤y≤4000
x≥1500
y≤21x
SegmentABBCCDDAEquationx=1500,0≤y≤750y=21x,1500≤x≤4000y=6000−x,4000≤x≤6000y=0,1500≤x≤6000z=0.08x+0.1yz=120+0.1yz=0.13xz=600−0.02xz=0.08x
PointA(1500,0)B(1500,750)C(4000,2000)D(6000,0)z=0.08x+0.1yz=120z=195z=520z=480
Because the point (4000,2000) produces the highest fund’s return we conclude that $4000 should be invested in
How much should be invested in bond A and $2000 should be invested in bond B.
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