Question
You now have $1000. At the end of every year, you add $1000 to the investment from your work savings. The following investments are available
You now have $1000. At the end of every year, you add $1000 to the investment from your work savings. The following investments are available to you during the next three years: INVESTMENT A. Every dollar invested now yields $0.20 a year from now and $1.25 three years from now. INVESTMENT B. Every dollar invested now yields $0.10 a year from now and $1.40 two years from now. INVESTMENT C. Every dollar invested a year from now yields $ 1.60 three years from now. During each year uninvested cash can be placed in money market funds, which yield 8% interest per year. At most 30% of the total dollar amount invested can be in A, at least 25% in B, and at most 40% in C.
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