I now have $100. The following investments are availableduring the next three years:Investment A Every dollar invested now yields $0.10 ayear from now and $1.30 three years from now.Investment B Every dollar invested now yields $0.20 ayear from now and $1.10 two years from now.Investment C Every dollar invested a year from now yields$1.50 three years from now.During each year, uninvested cash can be placed in moneymarket funds, which yield 6% interest per year. At most $50may be placed in each of investments A, B, and C. Formulatean LP to maximize my cash on hand three years from now.
I now have $100. The following investments are availableduring the next three years:Investment A Every dollar invested now yields $0.10 ayear from now and $1.30 three years from now.Investment B Every dollar invested now yields $0.20 ayear from now and $1.10 two years from now.Investment C Every dollar invested a year from now yields$1.50 three years from now.During each year, uninvested cash can be placed in moneymarket funds, which yield 6% interest per year. At most $50may be placed in each of investments A, B, and C. Formulatean LP to maximize my cash on hand three years from now.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 43P
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Question
I now have $100. The following investments are available
during the next three years:
Investment A Every dollar invested now yields $0.10 a
year from now and $1.30 three years from now.
Investment B Every dollar invested now yields $0.20 a
year from now and $1.10 two years from now.
Investment C Every dollar invested a year from now yields
$1.50 three years from now.
During each year, uninvested cash can be placed in money
market funds, which yield 6% interest per year. At most $50
may be placed in each of investments A, B, and C. Formulate
an LP to maximize my cash on hand three years from now.
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