You can invest at most 5000 in any one of plans a b or c


You now have $10,000, and the following investment plans are available to you during the next three years:

Investment A: Every dollar invested now yields SO. 10 a year from now and S1.30 three years from now.

Investment B: Every dollar invested now yields $0.20 a year from now and $1.10 two years from now.

Investment C: Every dollar invested a year from now yields $1.50 three years from now.

During each year, you can place uninvested cash in money market funds that yield 6% interest per year.

However, you can invest at most $5000 in any one of plans A. B. or C. Determine how to maximize your cash on hand three years from now.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You can invest at most 5000 in any one of plans a b or c
Reference No:- TGS02705538

Expected delivery within 24 Hours