Question
Solve it on Excel solver as well! Ann is considering her investment policy for the next 4 years. She will have 750000 available at the
Solve it on Excel solver as well! Ann is considering her investment policy for the next 4 years. She will have 750000 available at the beginning of each of the next four years.
Each year Ann expects to have available both certificates of deposit returning 3.55% after 1 year and ones returning 10.5% after 2 years. At the beginning of the first year, she will also have an opportunity to make a special investment that would return 30.2% after four years. She is, however, allowed to invest no more than 4500 into this option.
Assume that all funds can be reinvested at maturity. What is the maximal total interest (in pounds) that Ann can earn by the beginning of the fifth year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started