A person wants to invest an amount of ₹75,000. He has two options A and B yielding 8% and 9% return respectively on the invested amount. He plans to invest at least ₹15,000 in Plan A and at least ₹25,000 in Plan B. Also he wants that his investment in Plan A is less than or equal to his investment in Plan B. Which of the following options describes the given LPP to maximize the return (where x and y are investments Plan A and Plan B respectively?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4).
Let $x$ be the investment in Plan A and $y$ be the investment in Plan B.
Total investment constraint
$x+y=75000$
Return to be maximized
$Z=0.08x+0.09y$
Given conditions
$x\ge15000$
$y\ge25000$
$x\le y$
The required LPP is:
Maximize $Z=0.08x+0.09y$
subject to
$x+y=75000,\;x\ge15000,\;y\ge25000,\;x\le y$