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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
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 Ox+y 10000 O y 2x Oy 10000 0.04x+0.085y 10000 Oy 10000 Ox+y 83000 O x 2y * 10000
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