Donald Rump is the international funds manager for Countribank. Each day Donalds job is to determine how the bank’s current holdings of dollars, pounds, marks, and yen should be adjusted to meet the day’s currency needs. Today the exchange rates between the various currencies are given in Table 86. For example, one dollar can be converted to .58928 pounds, or one pound can be converted to 1.697 dollars.
At the beginning of the day, Countribank has the currency holdings given in Table 87.
At the end of the day, Countribank must have at least the amounts of each currency given in Table 88.
Donald’s goal is to each day transfer funds in a way that makes currency holdings satisfy the previously listed minimums, and maximizes the dollar value of the currency holdings al the end of the day.
To figure out the dollar value of, say, one pound, average the two conversion rates. Thus, one pound is worth approximately
table 86
| To | ||||
From | Dollars | Pounds | Marks | Yen | |
Dollars | 1 | .58928 | 1.743 | 138.3 | |
Pounds | 1.697 | 1 | 2.9579 | 234.7 | |
Marks | .57372 | .33808 | 1 | 79.346 | |
Yen | .007233 | .00426 | .0126 | 1 |
table 87
Currency | Units (in Billions) |
Dollairs | 8 |
Pounds | 1 |
Marks | 8 |
Yen | 0 |
table 88
Currency | Units (in Billions) |
Dollars | 6 |
Pounds | 3 |
Marks | 1 |
Yen | 10 |
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