5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to maximize the investment return. The following guidelines have been established for diversifying the investments and lessening the risk : A.No more than 30% of total investment should be in SUN B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives C.At least 40% of the investment should be in T-bills and CDs D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a ratio a least 1,2 to 1. Formulate the LP model for PT. PLN

Advanced Engineering Mathematics
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ISBN:9780470458365
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5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual
returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to
maximize the investment return.
The following guidelines have been established for diversifying the investments and lessening
the risk :
A.No more than 30% of total investment should be in SUN
B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives
C.At least 40% of the investment should be in T-bills and CDs
D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a
ratio a least 1,2 to 1.
Formulate the LP model for PT. PLN
Transcribed Image Text:5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to maximize the investment return. The following guidelines have been established for diversifying the investments and lessening the risk : A.No more than 30% of total investment should be in SUN B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives C.At least 40% of the investment should be in T-bills and CDs D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a ratio a least 1,2 to 1. Formulate the LP model for PT. PLN
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