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

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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)