You now have $10,000, and the following investment plans are available to you during the next three
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You now have $10,000, and the following investment plans are available to you 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, you can place uninvested cash in money market funds that yield 6% interest per year.
However, you can invest at most $5000 in any one of plans A, B, or C. Determine how to maximize your cash on hand three years from now.
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Related Book For
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright
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