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LP = Linear Programming You want to evaluate your savings of 2.000.000 TL. If you deposit your money in the bank, you get 6% interest
LP = Linear Programming
You want to evaluate your savings of 2.000.000 TL. If you deposit your money in the bank, you get 6% interest income per year. The Bank also provides 9% annual income to the 3-year private account and 12% annual income to the 5-year private account. Also, if you invest your money in a 6-year government bond, 8.5% per year; if you invest in a 8-year municipal bond, you can get 13% interest income per year. However you have to pay 150.000 TL (rising 5% in every three years) every three years for the installment of the house you buy. How should you invest 2.000.000 TL to maximize the earnings at the end of 9 years. (Create only the LP model, do not solve the problem) You want to evaluate your savings of 2.000.000 TL. If you deposit your money in the bank, you get 6% interest income per year. The Bank also provides 9% annual income to the 3-year private account and 12% annual income to the 5-year private account. Also, if you invest your money in a 6-year government bond, 8.5% per year; if you invest in a 8-year municipal bond, you can get 13% interest income per year. However you have to pay 150.000 TL (rising 5% in every three years) every three years for the installment of the house you buy. How should you invest 2.000.000 TL to maximize the earnings at the end of 9 years. (Create only the LP model, do not solve the problem)Step by Step Solution
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