LINEAR PROGRAMMING, EXCEL SOLVER

An investor has $20,000 to invest in a portfolio of three accounts. Account 1 offers a return of 2% and at a low risk. Account 2 offers a return of 4% and has a medium risk. Account 3 offers a return of 5% but at a relatively high risk. He decides to invest no more than $3000 in Account 3 and at least twice as much in Account 1 the investment in 2.

a. Formulate this as a linear programming problem (i.e. specify constraint equations and an objective function aimed at maximizing the overall return on investment)

b. Specify this problem in Microsoft Excel

c. Use Excels solver add-in to determine what amounts should be invested in each account in order to maximize the year end return?