Investor Matt has $83,000 to invest in a CD and a mutual fund. The CD...
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Investor Matt has $83,000 to invest in a CD and a mutual fund. The CD yields4% and the mutual fund yields an average of 8.5%. The mutual fund requires aminimum investment of $10,000, and Matt requires that at least 2 times asmuch money be invested in the CD as in the mutual fund. You must invest inthese bonds to maximize his return.This can be set up as a linear programming problem. Introduce the decisionvariables:x = dollars invested in the CDy = dollars invested in the mutual fundCheck all of the problem constraints. Note: The non-negative constraints arenot included here.0.04x + 0.085y ? 83000x+y2 10000y? 2xy ? 100000.04x+0.085y ? 10000y ? 10000AUDx + y ? 83000 x ? 2yx ? 10000
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