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You want to invest 40.000 TL at the beginning of each year for the next 5 years. You have got following options: If you deposit
You want to invest 40.000 TL at the beginning of each year for the next 5 years. You have got following options: If you deposit your money in the bank, you get 5% interest income per year. Also, if you invest your money in a 3-year municipal-bond, you can get 6.5% per year and have a current market price equal to 104% of face value. However, the government deducts 12% tax per year from the interest income you get from the bank. How should your investment be planned ?
(create only the lp model dont solve the problem)
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