I have $ 10,000 USD. You can invest in the following options at any time:

Investment A: Every dollar invested now yields $ 0.08 one year from today and 1.25 three years from now.

Investment B: Every dollar invested now yields $ 0.15 one year from today and 1.10 two years from now.

Investment C: Every dollar invested now yields 1.40 three years from now.

Consider that we are at the beginning of year 1.

Cash that is not invested can be allocated to money market funds each year, yielding 4% interest per year.

A maximum of $ 5,000 USD can be placed on each investment at any point in time.

Come up with a model that will maximize my cash six years from now (that is, the amount of money I will have available at the beginning of year 7), solve it, and specify the maximum amount I could receive.

Answer rating: 100% (QA)

To get the maximum return from 10000 First 5000 will be invested in inves... View the full answer