|
|
Subject:
Linear Program
Category: Science > Math Asked by: shaherome-ga List Price: $2.00 |
Posted:
31 Jan 2006 11:56 PST
Expires: 02 Feb 2006 11:11 PST Question ID: 439733 |
Sam has $3000 to invest over the next 5 years. At the beginning of each year he can invest money in 1 or 2 year time deposits.The bank pays 4% interest on 1 year time deposits and 9% (total) on 2 year time deposits. In addition, Globe Investments will offer 3 year certificates starting at the begining of the second year.These certificates will return 15 % (total). If sam reinvests his money that is availble every year, formulate a linear program so that to maximize his total cash on hand at the end of the 5th year. |
|
There is no answer at this time. |
|
Subject:
Re: Linear Program
From: shields-ga on 01 Feb 2006 19:47 PST |
You can think of the per-year return on the second investment option as 4.403%*, and the per-year return on the Globe option as 4.769%**. So you want to get into the Globe program ASAP. Your best bet is therefore to put all your money into the 2-year plan followed by the Globe plan. This will give you $3760.50 in the end. -Nate *from the square root of 1.09 ** from the cube root of 1.15 |
If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you. |
Search Google Answers for |
Google Home - Answers FAQ - Terms of Service - Privacy Policy |