Question:

# Investor Matt has $83,000 to invest in a CD and a mutual

Last updated: 7/15/2022

Investor Matt has $83,000 to invest in a CD and a mutual fund. The CD yields 4% and the mutual fund yields an average of 8.5%. The mutual fund requires a minimum investment of $10,000, and Matt requires that at least 2 times as much money be invested in the CD as in the mutual fund. You must invest in these bonds to maximize his return. This can be set up as a linear programming problem. Introduce the decision variables: x = dollars invested in the CD y = dollars invested in the mutual fund Check all of the problem constraints. Note: The non-negative constraints are not included here. 0.04x + 0.085y ≤ 83000 x+y2 10000 y≥ 2x y ≤ 10000 0.04x+0.085y ≥ 10000 y ≥ 10000 AUD x + y ≤ 83000 x ≥ 2y x ≥ 10000