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I need to solve this using Solver in Excel (needs the objective, changing cells, constraints, etc) Al Ferris has $60,000 that he wishes to invest
I need to solve this using Solver in Excel (needs the objective, changing cells, constraints, etc)
Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, and D. Investments A and B are available at the beginning of each of the next five years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40 ) two years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5 . Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5 . Formulate and solve a linear programming model for this problem on a spreadsheet. a. Which investment plan maximizes the amount of money that can be accumulated by the beginning of year 6? b. Determine the ending balance at Year 5Step by Step Solution
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