Chapter 6.2, Problem 39E

In Problems 41-56, construct a mathematical model in the form of a linear programming problem. (The answer in the back of the book for these application problems include the model.) Then solve the problem using the simplex method. Include an interpretation of any nonzero slack variables in the optimal solution.

Investment. An investor has at most $\text{\$}100,000$ to invest in government bonds, mutual funds, and money market funds. The average yields for government bonds, mutual funds, and money market funds are $8\text{\%},13\text{\%},$ and $15\text{\%}$, respectively. The investor’s policy requires that the total amount invested in mutual and money market funds not exceed the amount invested in government bonds. How much should be invested in each type of investment in order to maximize the return? What is the maximum return?