1 Fred has $5000 to invest over the next five years. At the beginning of each...

 

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1 Fred has $5000 to invest over the next five years. At the beginning of each year he can invest money in one or two-year time deposits. The bank pays 4 percent interest on one-year time deposits and 9 percent (total) on two-year time deposits. In addition, West World Limited will offer three-year certificates starting at the beginning of the second year. These certificates will return 15 percent (total). If Fred reinvests his money that is available every year, formulate a linear program to show him how to maximize his total cash on hand at the end of the fifth year. 1 Fred has $5000 to invest over the next five years. At the beginning of each year he can invest money in one or two-year time deposits. The bank pays 4 percent interest on one-year time deposits and 9 percent (total) on two-year time deposits. In addition, West World Limited will offer three-year certificates starting at the beginning of the second year. These certificates will return 15 percent (total). If Fred reinvests his money that is available every year, formulate a linear program to show him how to maximize his total cash on hand at the end of the fifth year.

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