Use the simplex method to solve the linear programming problem.Alan wants to invest a total of $21,000 in mutual funds and a certificate of deposit (CD). He wants to invest no more in mutual funds than half the amount he invests in the CD. His expected return on mutual funds is 8% and on the CD is 4%. How much money should Alan invest in each area in order to have the largest return on his investments? What is his maximum one-year return?

A. Maximum one-year return is $1680 when he invests $21,000 in mutual funds and $0 in the CD.
B. Maximum one-year return is $1120 when he invests $7000 in mutual funds and $14,000 in the CD.
C. Maximum one-year return is $840 when he invests $0 in mutual funds and $21,000 in the CD.
D. Maximum one-year return is $4200 when he invests $14,000 in mutual funds and $7000 in the CD.


Answer: B

Mathematics

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