An investor is considering an investment portfolio. Investments A and B will each be available at the beginning of each of the next 5 years. Each dollar invested in A at the beginning of the year returns $2. (principal plus earnings) three years later. Each dollar invested in B at the beginning of the year returns $1.70 two years later. In addition, investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of the year returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 3 returns $1.40 at the end of year 5. The investor has $100,000 initially. The investor wishes to know which investment plan maximizes the amount of money he can accumulate by the beginning of year 6. Construct the linear programming model of this problem.
An investor is considering an investment portfolio. Investments A and B will each be available at the beginning of each of the next 5 years. Each dollar invested in A at the beginning of the year returns $2. (principal plus earnings) three years later. Each dollar invested in B at the beginning of the year returns $1.70 two years later. In addition, investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of the year returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 3 returns $1.40 at the end of year 5. The investor has $100,000 initially. The investor wishes to know which investment plan maximizes the amount of money he can accumulate by the beginning of year 6. Construct the linear programming model of this problem.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section: Chapter Questions
Problem 63P
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An investor is considering an investment portfolio. Investments A and B will each be available at the beginning of each of the next 5 years. Each dollar invested in A at the beginning of the year returns $2. (principal plus earnings) three years later. Each dollar invested in B at the beginning of the year returns $1.70 two years later. In addition, investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of the year returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 3 returns $1.40 at the end of year 5. The investor has $100,000 initially. The investor wishes to know which investment plan maximizes the amount of money he can accumulate by the beginning of year 6. Construct the linear programming model of this problem.
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