A university professor has Php 1M to invest in two types of mutual funds: the equity fund and the high yield fund. He plans to invest at least Php 200,000 in the equity fund and at least Php 150,000 in the other fund. If the equity fund earns 10% while the high yield earns 15%, how much amount should he invest in each fund to maximize his annual yield? using linear programming

Amount invested in equity fund = 200,000

?

Amount invested in high yield fund = 800,000

Let the amount invested in equity fund be x

Let the amount invested in high yield fund be y

Maximize, Profit = 0.10x + 0.15y

Constraints:

• x + y = 1,000,000 [ Total amount invested]
• x >= 200,00
• y >=150,000

Since the return is higher in high yield fund, we will plan to invest (1M - 200,00) in high yield fund, which is 980,000

Amount invested in equity fund = 200,00

Amount invested in high yield fund = 980,000

In my knowledge, there is a typo, it should be 200,000 (for equity fund constraint), if that is the actual constraint then the answer will be [Ignore this answer, if value of 200,00 is correct constraint]

Amount invested in equity fund = 200,000

Amount invested in high yield fund = 800,000