Answer Happy

(a) formulate linear programming model for this this problem
Applications 2 Solver Computer Project Capital Bank invests in short-term trade credits, corporate bonds, gold stocks, and construction loans. To encourage a diversified portfolio, the board of directors has placed limits on the amount that can be committed to any one type of investment. Capital Bank has R 5 million available for immediate investment and wishes to do two things: (i) maximize the interest earned on the investments made over the next six months and (ii) satisfy the diversification requirements as set by the board of directors. The specifics of the investment possibilities are shown in the following table. In addition, the board specifies that at least 55% of the funds invested must be in gold stocks and construction loans, and that no less than 15% be invested in trade credit. Interest earned (%) Maximum Investment (R million) Investment Trade Credit Corporate Bonds 7 1.0 11 2.5 Gold Stocks 19 1.5 Construction Loans 15 1.8 (a) Formulate a linear programming model for this problem