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Investments for a College Savings Fund. Julia Johnson has been accumulating savings for years to put toward her children's future college educations. She would now

Investments for a College Savings Fund. Julia Johnson has been accumulating savings for years to put toward her children's future college educations. She would now like to set up a college-savings fund for her two children. The college-savings fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of her accumulated savings that she finally decides to commit to the college-savings fund, she wants to invest at least 30% of that amount in the bond fund. In addition, she wants to select a mix that will enable her to obtain a total return of at least 7.5%.(MLOs 2.22.3).Reminder that you need to include a constraint where the percentages add up to 1.
a.Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.
b.Solve the problem using the graphical solution procedure.

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