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Francois and Camille Merrit recently inherited a substantial amount of money from a deceased relative. They want to use part of this money to establish
Francois and Camille Merrit recently inherited a substantial amount
of money from a deceased relative. They want to use part of this money to
establish an account to pay for their daughters college education. Their daughter,
Lisa, will be starting college five years from now. The Merrits estimate that her
first year college expenses will amount to $ and increase $ per year
during each of the remaining three years of her education. The following
investments are available to the Merrits:
Investment Available Matures Return at Maturity
A every year year
B years
C years
D years
The Merrits want to determine an investment plan that will provide the necessary
funds to cover Lisas anticipated college expenses with the smallest initial
investment.
a Formulate an LP model for this problem.
b Create a spreadsheet model for this problem and solve it using Solver.
c What is the optimal solution? i need screen shots of excel table used in solver as well if possible
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