A financier plans to invest up to $600,000 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?
A financier plans to invest up to $600,000 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?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Formulate but do not solve the following exercise as a linear programming problem.
A financier plans to invest up to $600,000 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?
| Maximize | P | = |
|
subject to the constraints | |
| amount available for investment |
|
||||
| allocation of funds |
|
||||
| x ≥ 0 | |||||
| y ≥ 0 |
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