Answer:
To maximize return, A with 390000 and B with 210000
Step-by-step explanation:
Given that a financier plans to invest up to $600,000 in two projects
Let x be the amount invested in 8% and y in 16%
Other information given is the investment in project B is riskier than the investment in project A, she has decided that the investment in project B should not exceed 35% of the total investment.
i,.e.
Also
The objective is to maximize interest function
subject to the above two constraints.
The corner points would be P(390000,210000) or Q(600000,0)
Calculate Z for these two points
Profit at P =
Profit at Q =
So to maximize return, A with 390000 and B with 210000