I can't seem to get the model correct for this problem.
A portion of an inheritance will be used to set up a trust fund for two children. The two fund opportunities are: (1) a bond fund with a projected return of 6%, (2) a stock fund with a projected return of 10%. Whatever is decided what portion will be committed to the trust fund, at least 30% of that amount will be invested in the bond fund. In addition, a mix will be selected that will enable a total return of at least 7.5%.
a. Formulate a linear programming model to determine the percentage that should be allocated to each of the possible alternatives.
b. Solve using the graphical solution procedure.