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The Rio Credit Union has $ 2 5 0 , 0 0 0 available to invest in a 1 2 - month commitment and wants

The Rio Credit Union has $250,000 available to invest in a 12-month commitment and wants to invest all of it. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier high-yield bonds at an average rate of return of 9%. Credit union regulations require diversification to the extent that at least 40% of the investment be placed in Treasury notes. It is also decided that no more than 30% of the investment be placed in bonds.
The aim of the objective function for Rio Credit Union should be to Maximize the objective value.
Decision variables:
x=$ invested in Treasury notes
Y=$ invested in Bonds
Objective function (in decimals, eg.,.07, NOT 7%):
Z=ROI=.08x+.09Y
Subject to:
1x+1Y,=$250,000(C1)
1x+0Y,$100,000(C2)
0x+1Y,$75,000(C3)
x,Y0,
On the graph on right, constraints C1,C2 and C3 have been plotted using the line plotting tool.
Using the point drawing tool, plot all the corner points for the feasible area.
In this case, the feasible area lies the line plotted for constraint C1
The optimal ROI occurs when:
x=175,000(enter your response as a whole number).
Y=75,000(enter your response as a whole number).
Ontimal ROI value 'Z'=prod (enter vour response as a whole number).
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