Consider the problem InvestmentsRUs wants to invest 1000000

Consider the problem “Investments-R-Us wants to invest $1,000,000 for a client in three different companies.Company A is expected to pay an annual dividend of 8%, company B an annual dividend of 5%, and company C an annual dividend of 3%. They will invest at least $100,000 and no more than $800,000 in each. Also the total amount invested in A and B cannot exceed the amount invested in C. How much should be invested in each company in order to maximize expected annual dividend?”

(a) Find the objective function. (b) Find the constraints.

Solution