Question

Mr. Anil wants to invest at most $Rs.60,000$ in Fixed Deposit (F.D.) and Public Provident Fund (P.P.F.). He wants to invest at least $Rs.20,000$ in F.D. and at least $Rs.15,000$ in P.P.F. The rate of interest on F.D. is $8\%p.a.$ and that on P.P.F. is $10\%p.a.$ Formulate the above problem as L.P.P. to determine maximum yearly income.

Answer 1

Let the money F.D. invest in $=x$

and money invested in $PPF=y$

Constraint $=x+y=60,000$

$x\ge 20,000$

$y\ge 15,000$

Maximize $z=0.08x+0.1y$