An investor has $70,000 to divide among several instruments. Municipal bonds have an 8.5% return, CDs a 5% return, t-bills a 6.5% return, and growth stock 13%. The following guidelines have been established:

1)No more than 20% in municipal bonds

2)Investment in growth stock fund should be greater than other three alternatives.

3)At least 10% invested in treasury bills and municipal bonds

4)Less should be invested in treasury bills and growth stocks than in CDs and municipal bonds by a ratio of 1.2 to 1.

5)All $70,000 should be invested.

Formulate a model and solve it using computer. How should the $70,000 be allocated to each alternative to maximize annual return? What is the annual return?