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#1 To settle a class action lawsuit related to a medical records data breach, CareSync must make cash payments according to the following schedule. 1
#1 To settle a class action lawsuit related to a medical records data breach, CareSync must make cash payments according to the following schedule. 1 2 3 4 5 6 Year Payments ($) 126,000 134,000 152,000 168,000 191,000 229,000 The annual payments must be made at the beginning of each year. The judge in the lawsuit will approve an amount that, along with carnings on investment, will cover the annual payments. The investment options are limited to the following. . Federal government bonds with a face value of $1,000 per unit that may be purchased only at the beginning of the plan. The market price is $1,025 per unit, and the annual coupon ratc is 4.8%. The bonds mature at the beginning of year 5. No more than 250 units of the bond may be purchased. . Municipal annunities that may be purchased at the beginning of each year. These annuitics mature in two years and provide a rate of return of 7.4%. There is no restriction on the amount placed into annuitics. . A savings account that carns 3.1% annual interest. There is no restriction on the amount placed into savings. Let Z be the total amount invested at the beginning of year 1, F be the units of federal bonds purchased at the beginning of year 1, M; be the amount placed into annuities at the beginning of year i, and S, be the amount placed in savings at the beginning of year i. Develop the lincar programming model needed to minimize the total up-front investment (Z) that CareSync will need to make while still ensuring that the provisions of the court-ordered payment schedule are met. Provide all constraints in standard form. You do not need to solve the LP.
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