Determine how he can best invest the money

Reference no: EM131939359

An international graduate student will receive a $28,000 foundation scholarship and reduced tuition. He must pay $1,500 in tuition for each of the autumn, winter, and spring quarters, and $500 in the summer. Payments are due on the first day of September, December, March, and May, respectively. Living expenses are estimated to be $1,500 per month, payable on the first day of the month. The foundation will pay him $18,000 on August 1, and the remainder on May 1. To earn as much interest as possible, the student wishes to invest the money. Three types of investments are available at his bank: a 3-month CD, earning 0.75% (net 3-month rate); a 6-month CD, earning 1.9%; and a 12-month CD, earning 4.2%. Develop a linear optimization model to determine how he can best invest the money and meet his financial obligations.

Reference no: EM131939359

Questions Cloud

Determine the best way to schedule the shows : Is it possible to achieve revenues of $600,000? What is the highest amount of revenue that can be achieved?

Present a summary of the teaching of the book of hebrews : Identify in your essay the passage that you believe gives the strongest affirmation of the deity of Christ and explain why you choose that passage.

What things would be brought to meeting : What would be a reasonable sales call objective for this first meeting? What things would be brought to meeting?

Units of inventory does company order in one shipment : How many units of inventory does the company order in one shipment?

Determine how he can best invest the money : Develop a linear optimization model to determine how he can best invest the money and meet his financial obligations.

Develop a plan that could be used to introduce : Develop a plan that could be used to introduce and utilize the tools and techniques into the workplace.

Compute cost of retained earnings : Compute the cost of retained earnings (Ke). If a $3 flotation cost is involved, compute the cost of new common stock (Kn).

Determining the haller pub-brewery : Jeremy Haller of Haller's Pub & Brewery has compiled data describing the amount of different ingredients and labor resources needed to brew six different

Describe specific qualitative methods and tools : Describe specific qualitative methods and tools that could be used within your discipline to gather data. Include your rationale.

User Account

All Pages