Question: please use excel solver to solve the question show decision variables, objectives and constraints. Thank you Retirement Planning: Your uncle has $90,000 that he wishes

please use excel solver to solve the question show decision variables, objectives and constraints. Thank you

Retirement Planning: Your uncle has $90,000 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 fixed-income investments, labeled 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 1-5).

  • Each dollar invested in A at the beginning of a year returns $1.20 (a profit of $0.20) two years later, in time for immediate reinvestment.
  • Each dollar invested in B at the beginning of a year returns $1.36 three years later.

Investments C and D will each be available just once in the future.

  • Each dollar invested in C at the beginning of year 2 returns $1.66 at the end of year 5.
  • Each dollar invested in D at the beginning of year 5 returns $1.12 at the end of year 5.

Your uncle is obligated to make a balloon payment on an existing loan in the amount of $24,000 at the end of year 3. He wants to make that payment out of the investment account.

  1. Devise an investment plan for your uncle that maximizes the value of the investment account at the end of five years. How much money will be available for the annuity in five years?
  2. Show the network diagram corresponding to the solution in (a). That is, label each of the arcs in the solution and verify that the flows are consistent with the given information.

[Hint: First draw a network diagram, similar to the college savings example. Examine each node and the arcs associated with it. Also, note the differences. In particular, there is no investment option in this retirement planning example that matures each year. This can cause the problem to be infeasible. Add extra "non-growing" arcs to the model that connect each node to its subsequent node.]

Example:

please use excel solver to solve the questionplease use excel solver to solve the question
\fRates 65% Network: Investment Problem 6% 14% 18% Decisions 10 A1 A2 A3 A4 A5 A6 A7 A8 B1 B3 B5 C1 C4 D1 Objective 0.000 Constraints Year O 0 -1 1 0 0 0 H 0 O 0 -1.06 0 0 O 0 soooo boooo boooo -1.06 -1.14 O O O O 0 -1.18 O E -1.06 0 O o OOOOOO -1.06 1 0 -1.14 0 0 O -24 0 O booO oooOOO UI A -1.06 1 0 0 0 0 0 O -26 O 0 0 0 0 -1.18 O 0 28 O -1.06 -1.14 O O O O O O 0 0 0 -30 O O 0 -1.06 0 1.65 7 0 O

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