Question: 1. fomulate the LP Model; 2. identify the decision variables used in the model; and 3. determine the optimal solution. A trust fund is planning

1. fomulate the LP Model;

2. identify the decision variables used in the model; and

3. determine the optimal solution.

A trust fund is planning to invest up to $6000 in two types of bonds.: A and B. Bond A is safer than bond B and carries a dividend of 8% while bond B carries a dividend of 10%. Suppose that the bonds rule state that no more than $4000 may be invested in bond B, while at least $1500 must be invested in bond A. The amount invested in bond B cannot exceed one half the amount invested in bond A. How much should be invested in each type of bond to maximize the funds return?

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