University Scholarship Fund Endowment Year Cash required (in $1,000s) Price ($1000) Rate Years to Maturity 1...

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University Scholarship Fund Endowment Year Cash required (in $1,000s) Price ($1000) Rate Years to Maturity 1 2 3 4 5 6 250 1 1.2 8.00% 3 Annual Savings Multiple 250 250 250 250 250 Bond 2 1.1 3 1.01 1.3 6.00% 11.00% 4 5 The financing plan for the University endowment program includes investments in three types government bonds and in savings. Due to the Federal Interest rates plummeting to a low level in 2020 and other financial stresses in the economy, the first type of bond pays 8% interest and matures in 3 years, the second one pays 6% and matures in 4 years, and the third one pays 11% rate and matures in 5 years. The government bonds always pay $1,000 per bond at maturity regardless of their price. Moreover, any of the funds that are not invested in bonds will be placed in a savings account for which the annual rate of interest is 1%. Also, the bond investments have to be made as soon as the funds are received, and more bonds cannot be purchased from that endowment in the next 6 years. Create a Linear Programming Model to help the Treasurer identify what is the minimum amount Mr. Copperfield needs to donate to the University to cover the relevant scholarship costs for the next 6 years. Write the Linear Program Equations that will be used for identifying the minimum amount that Mr. Copperfield needs to donate to the University. University Scholarship Fund Endowment Year Cash required (in $1,000s) Price ($1000) Rate Years to Maturity 1 2 3 4 5 6 250 1 1.2 8.00% 3 Annual Savings Multiple 250 250 250 250 250 Bond 2 1.1 3 1.01 1.3 6.00% 11.00% 4 5 The financing plan for the University endowment program includes investments in three types government bonds and in savings. Due to the Federal Interest rates plummeting to a low level in 2020 and other financial stresses in the economy, the first type of bond pays 8% interest and matures in 3 years, the second one pays 6% and matures in 4 years, and the third one pays 11% rate and matures in 5 years. The government bonds always pay $1,000 per bond at maturity regardless of their price. Moreover, any of the funds that are not invested in bonds will be placed in a savings account for which the annual rate of interest is 1%. Also, the bond investments have to be made as soon as the funds are received, and more bonds cannot be purchased from that endowment in the next 6 years. Create a Linear Programming Model to help the Treasurer identify what is the minimum amount Mr. Copperfield needs to donate to the University to cover the relevant scholarship costs for the next 6 years. Write the Linear Program Equations that will be used for identifying the minimum amount that Mr. Copperfield needs to donate to the University.

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