Bob and Dora Sweet Wish to Start Investing $1,000 Each $\quad 9.1 \%$

question 60

Essay

Bob and Dora Sweet wish to start investing $1,000 each month. The Sweets are looking at five investment plans and wish to maximize their expected return each month. Assume interest rates remain fixed and once their investment plan is selected they do not change their mind. The investment plans offered are:
Fidelity $\quad 9.1 \%$ return per year
Optima $\quad 16.1 \%$ return per year
CaseWay $\quad 7.3 \%$ return per year
Safeway $\quad 5.6 \%$ return per year
National $\quad 12.3 \%$ return per year Since Optima and National are riskier, the Sweets want a limit of 30% per month of their total investments placed in these two investments. Since Safeway and Fidelity are low risk, they want at least 40% of their investment total placed in these investments.
Formulate the LP model for this problem.

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Definitions:

Outlook Contacts

A feature in Microsoft Outlook that allows users to save and manage contact information such as email addresses, phone numbers, and mailing addresses.

General Legacy

A bequest of a specific amount of money or a specific asset to a particular beneficiary, as stipulated in a will.

Specific Legacy

A bequest in a will that leaves a particular piece of property or a specified asset to a designated beneficiary.

Residual Legacy

The remainder of an estate that is left after all specific bequests have been fulfilled and debts have been paid.