Reference no: EM133255917

At the beginning of month 1, Finco has $400 in cash. At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills (see Table 2 below). Any money left over may be invested for one month at the interest rate of 0.1% per month; for two months at 0.5% per month; for three months at 1% per month; or for four months at 2% per month. Use linear programming to determine an investment strategy that maximizes cash on hand at the beginning of month 5. Formulate an LP to maximize Finco's profit.

Table 2

Month Revenues ($) Bills ($)

1 400 600
2 800 500
3 300 500
4 300 250