Table of Contents
Introduction
Language used: Excel (Solver add-on)
Task to solve:
- Money to be invested: $5.000.000
| Investment type | Earning to be achieved (per year) | Investment limit (milions) |
|---|---|---|
| Consumer credit | 7% | 1 |
| Corporative bonds | 11% | 1.5 |
| Gold deposits | 19% | 2.5 |
| Housing loans | 12% | 1.7 |
Additional Limits:
| Investment type | Investment out of all funds | |
|---|---|---|
| Consumer credit | Maximum 15% | |
| Housing loans & Gold deposits | Minimum 5% |
Mathematical Model
Decision Variables:
- Consumer credit
- Corporative bonds
- Gold deposits
- Housing loans
Function to maximize the earnings Z=0.07*x1+0.11*x2+0.19*x3+0.12*x4
Limits
- x1+x2+x3+x4=5
- x1<=1
- x2<=1.5
- x3<=2.5
- x4<=1.7
- x3+x4>=0.05(x1+x2+x3+x4)
- x1<=0.15(x1+x2+x3+x4)
Solution
Best distribution of the investment
Starting Fund to invest: $5.000.000,00
| Type of investment | Amount of investment ($) | Percentage of the total earnings |
|---|---|---|
| Consumer credit: | 0 | 0,00% |
| Corporative bonds | 800.000,00 | 16,00% |
| Gold deposits | 2.500.000,00 | 50,00% |
| Housing loans | 1.700.000,00 | 34,00% |
| Earning to be achieved (per year) as per calculations |
|---|
| $ 767.000,00 - 15,34% of the starting investment |