Question: You just won a $100,000 lottery and plan to invest it among the following alternatives:

You want to invest this $100,000 in such a way to maximize your return from investment (in terms of dollars) one year from now, while meeting the following guidelines:

? You must invest at least $5,000 in GF, and at least $3,000 in EF.

? The amount invested in EF should not exceed the amount invested in CD.

? No more than 80% of the investment can be in GF and CD combined.

? EF and CD combined should account for at least 30% of your investment.

a. Formulate a linear programming model for your investment decision. [15%]

b. Solve the model using Excel Solver. [5%]

c. Given the optimal solution obtained in part b., what would be the effect on your annual return if GF requires a minimum investment of $10,000? (Increase or decrease by how much? Or no change? Why?) [2%]