Imagine you are a financial advisor for a client looking to invest $750,000 in bonds. The following bonuses are considered:

Company	Interest rate	Years until expiration	Classification
acme chemistry	8,65%	11	1-Excellent
DynaStar	9,50%	10	3-Bueno
eagle view	10,00%	6	4-Fair
Micromodeled	8,75%	10	1-Excellent
OptiPro	9,25%	7	3-Bueno
Saber systems	9,00%	13	2-Very good

You believe that all companies are safe investments. However, to protect the investor, the following restrictions are observed:

No more than 25% of total funds should be invested in a single investment.

At least half should be invested in long-term bonds that mature in ten years or more. (at least 4)

No more than 35% of total funds will be invested in the combination of DynaStar, Eagle Vision and Optipro.

The investor wants to invest the $750,000 of his money. If his goal is to maximize the simple interest earned after the first year, how much should he allocate to each of the six investments?

(2) For this problem, use the six variables x1, x2, x3, x4, x5, x6 to represent the amounts invested in each company, in the same order as above. Which company does each variable refer to?

(2) What is your objective function and are you trying to maximize or minimize?

(4) There are a total of 9 constraints (seven <=, one >=, and one =) in this problem, plus the 6 non-negativity constraints. Determine the nine constraints and write them below.

(2) Why does it also have the six non-negativity constraints?

Answer rating: 100% (QA)

Answer Let x1 be the amount invested inAcme Chemic... View the full answer