Formulate and solve a complete linear programming model

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Reference no: EM1386064

Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in5 years. After consulting with his financial adviser, he has been offered four types of fixed-income investments, which we will label s investments A,B,C,D.
Investments A and B are available at the beginning of each of the next 5 years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) 2years later (in time for immediate reinvestment). Each dollar in-vested in B at the beginning of a year returns $1.70 three years later.
Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns$1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year.
Formulate and solve a complete linear programming model on a spreadsheet that maximizes the amount of money accumulated by the beginning of year 6.

Reference no: EM1386064

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