Suppose That a Farmer Has 5 Acres of Land That

question 8

Essay

Suppose that a farmer has 5 acres of land that can be planted with either wheat,corn,or a combination of the two.To ensure a healthy crop,a fertilizer and an insecticide must be applied at the beginning of the season before harvesting.The farmer currently has 100 pounds of the fertilizer and 150 pounds of the insecticide at the beginning of the season.Each acre of wheat planted requires 10 pounds of the fertilizer and 12 pounds of the insecticide.Each acre of corn planted requires 13 pounds of the fertilizer and 11 pounds of the insecticide.Each acre of wheat harvested yields a profit of $600,while each acre of corn harvested yields $750 in profit.What is the optimal allocation for the crops that maximizes the farmer's profit?

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Definitions:

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.

360-Day Year

An accounting assumption that simplifies interest calculations by using a year composed of twelve 30-day months.

Leap Years

Years that contain 366 days instead of the usual 365, with an extra day added to February, occurring every four years to maintain the calendar year's alignment with the Earth's revolutions around the Sun.

Interest Computation

The process of calculating the amount of interest due on a loan or investment based on the principal amount, rate, and time.