Math Problem Statement
ou have $98,000 you would like to invest in three different stocks: MarkyB Inc., JohnJohn Ltd., and Garretts Spaghetti House. You would like to invest no more than $18,000 in Garretts Spaghetti House, and you want the amount you invest in MarkyB Inc., to be at least the amount invested in JohnJohn Ltd. and Garretts Spaghetti House combined. If MarkyB Inc. earns 18% annual interest, JohnJohn Ltd. earns 15% annual interest, and Garretts Spaghetti House earns 7% annual interest, how much money (in dollars) should you invest in each stock to maximize your annual interest earned? What is the maximum annual interest earned?
Solution
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Linear Programming
Optimization
Inequalities
Algebra
Formulas
Total interest earned = 0.18x_1 + 0.15x_2 + 0.07x_3
x_1 + x_2 + x_3 = 98,000
x_3 ≤ 18,000
x_1 ≥ x_2 + x_3
x_1, x_2, x_3 ≥ 0
Theorems
Optimization through Linear Programming
Suitable Grade Level
Grades 10-12 (High School)
Related Recommendation
Investment Optimization: Maximize Annual Interest with Linear Programming
Maximizing Returns with Linear Programming: Investing $99,000 Across Three Stocks
Maximizing Annual Interest with Linear Programming for Treasury Bonds and Mutual Funds
Maximizing Investment Interest in MarkyB Inc., JohnJohn Ltd., and Garretts Spaghetti House
Maximizing Annual Interest for Investments in Stocks with Constraints