Michael has decided to invest $40,000 in three
Question # 00439004
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Updated on: 12/08/2016 06:12 AM Due on: 12/08/2016
Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of
8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an annualreturn of 9 percent. He has decided to invest no more than 30 percent of the total amount in Fund B and
no more than 40 percent of the total amount in Fund C.
a. Formulate a linear programming model that can be used to determine the amount of
investments Michael should allocate to each type of fund to maximize the total annual return.
investments Michael should allocate to each type of fund to maximize the total annual return.
b. How much should be allocated to each type of fund? What is the total annual return? Provide
solver screenshot.
solver screenshot.
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Solution: Michael has decided to invest $40,000 in three