Erica may invest up to $10,000 (USD) in the American stock market or the European stock...

 

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Erica may invest up to $10,000 (USD) in the American stock market or the European stock market. To invest in the European market, she needs to convert the currency from dollar to euro with the conversion rate of 1 USD = 0.85 Euro. She can invest in stocks and loans at each market. Each dollar invested in stocks in the American market yields 10 percent profit, and each dollar invested in a loan yields 15 percent profit. Each euro invested in stocks in the European market yields 15 percent profit, and each euro invested in a loan yields 10 percent profit. At most 40% of all money ivested in each market can be in loans. Formulate this problem as an algebraic linear programming model. Erica may invest up to $10,000 (USD) in the American stock market or the European stock market. To invest in the European market, she needs to convert the currency from dollar to euro with the conversion rate of 1 USD = 0.85 Euro. She can invest in stocks and loans at each market. Each dollar invested in stocks in the American market yields 10 percent profit, and each dollar invested in a loan yields 15 percent profit. Each euro invested in stocks in the European market yields 15 percent profit, and each euro invested in a loan yields 10 percent profit. At most 40% of all money ivested in each market can be in loans. Formulate this problem as an algebraic linear programming model.

Answer rating: 100% (QA)

Amount to invest 10000 Also 1 085 Euro Decision variables D... View the full answer