Question
My future investment plans are laid out for the next four years. In each year, funds available for investment come from two platforms: Lending Amounts
My future investment plans are laid out for the next four years. In each year, funds available for investment come from two platforms: Lending Amounts and profit income from the previous year's investment. Expenses in each year must include repayment of the previous year's loan plus 10.5% interest, and the current payroll payment. Also, profit income on investment from year 4 (at 120% of the investment) must be sufficient to cover the loan plus interest from year 4. Write the complete maximization LP model for this problem. 4. (5 Pts.)
Year | 1 | 2 | 3 | 4 |
Lending Amounts Available | 3126 | 7500 | 4620 | 5800 |
Profit Income on Investment (% of previous year's investment) | ------ | 114% | 116% | 117% |
Maximum Financing | 4500 | 8000 | 6000 | 7500 |
Payroll Payment | 100 | 120 | 150 | 100 |
Payroll Payment 100 120 150 100
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