Question
Noah is looking to invest $1,000 each month. Noah is looking at 5 investment plans and wants to maximize expected monthly returns. Assume interest rates
Noah is looking to invest $1,000 each month. Noah is looking at 5 investment plans and wants to maximize expected monthly returns. Assume interest rates remain fixed. The plans offered are:
Sonora 9.1% return per year
Optima 16.1% return per year
Skyline 7.3% return per year
Wildwood 5.6% return per year
Vault 12.3% return per year
Since Optima and Vault are riskier, Noah wants to limit monthly investment in these funds to a maximum of 30%. Since Wildwood and Sonora are low risk, Noah wants at least 40% the monthly investment placed in these. Using Excel/Solver, formulate the LP model for this problem and find the optimal solution. Please show excel screenshots of steps to final solution.
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