Question: Al Ferris has $ 7 0 , 0 0 0 that he wishes to invest now in order to use the accumulation for purchasing a
Al Ferris has $ that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixedincome investments, which we will label as investments A B C and D Investments A and B are available at the beginning of each of the next five years call them years to Each dollar invested in A at the beginning of a year returns $a profit of $ two years later in time for immediate reinvestment Each dollar invested in at the beginning of a year returns $ three years later. Investments and will each be available at one time in the future. Each dollar invested in C at the beginning of year returns $ at the end of year Each dollar invested in at the beginning of year returns $ at the end of year
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Formulate and solve a linear programming model for this problem on a spreadsheet.
a Which investment plan maximizes the amount of money that can be accumulated by the beginning of year
Note: Leave no cells blank. Enter O wherever required.
tableInvestment AInvestment BtableInvestment CYear tableInvestment DYear Year Year Year Year Year Year Year Dollars Invested,,,,,,,,,
b Determine the ending balance at Year
Ending balance
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