Michael Has Decided to Invest $40,000 in Three Types of Funds

question 35

Essay

Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of 8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an annual return of 9 percent. He has decided to invest no more than 30 percent of the total amount in Fund B and no more than 40 percent of the total amount in Fund C.
a. Formulate a linear programming model that can be used to determine the amount of investments Michael should allocate to each type of fund to maximize the total annual return.
b. How much should be allocated to each type of fund? What is the total annual return?

---

Definitions:

Genetic Tendencies

Inclinations or predispositions for certain traits, behaviors, or conditions determined by one's genes.

Strong Jawline

A physical characteristic where the lower jaw is pronounced and well-defined, often considered an attractive trait in many cultures.

Youthful Features

Physical or visual attributes typically associated with young individuals, often perceived as signs of health, vitality, and fertility.

Facial Symmetry

The degree to which both sides of a person's face are identical in appearance; often associated with perceptions of attractiveness.