As a financial consultant, Mary (one of your clients) requires your assistance in how to pay...
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As a financial consultant, Mary (one of your clients) requires your assistance in how to pay off her debts owed to three credit-card companies, as detailed in the next table. Credit-Card Company Balance (S) Monthly Interest Rate (%) 1.5 A 20,000 в 50,000 30,000 0.5 Mary has to pay off within 24 months and can repay at most $5000 per month. Her goal is to minimize the total payment. For example, if she repays $1000 to Company A at the end of month 1, her outstanding debt will be S19,300 $20,000(1 + 1.5%)-S1000, You assist Mary in attaining her goal by doing the next three steps: (a) Formulate a linear program by clearly stating the decision variables, the objective function and (10 marks] (b) Develop an Excel worksheet for the linear program in (a) and solve it using Solver. [7 marks] (c) From the answer report in (b), explain the optimal plan of payments with logical reasoning. [5 marks] constraints. As a financial consultant, Mary (one of your clients) requires your assistance in how to pay off her debts owed to three credit-card companies, as detailed in the next table. Credit-Card Company Balance (S) Monthly Interest Rate (%) 1.5 A 20,000 в 50,000 30,000 0.5 Mary has to pay off within 24 months and can repay at most $5000 per month. Her goal is to minimize the total payment. For example, if she repays $1000 to Company A at the end of month 1, her outstanding debt will be S19,300 $20,000(1 + 1.5%)-S1000, You assist Mary in attaining her goal by doing the next three steps: (a) Formulate a linear program by clearly stating the decision variables, the objective function and (10 marks] (b) Develop an Excel worksheet for the linear program in (a) and solve it using Solver. [7 marks] (c) From the answer report in (b), explain the optimal plan of payments with logical reasoning. [5 marks] constraints.
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Answer rating: 100% (QA)
Given Information Credit Card Balance Monthly Interest A 20000 150 INTa B 50000 1 INTb C 30000 050 INTc Payoff period is 24 months and payment per mon... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
Posted Date:
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