As part of the settlement for a class action lawsuit, Hoxworth Corporation must providesufficient cash to make the following annual payments (in thousands of dollars).Year1346.Payment190 215 240 285315 460The annual payments must be made at the beginning of each year. The judge willapprove an amount that, along with earnings on its investment, will cover the annualpayments. Investment of the funds will be limited to savings (at 4% annually) andgovernment securities, at prices and rates currently quoted in The Wall Street Journal.Hoxworth wants to develop a plan for making the annual payments by investing in thefollowing securities (par value 5 $1000). Funds not invested in these securities will beplaced in savings.SecurityCurrent PriceRate (%)Years to Maturity$1055$10006.7503.5.1254.Assume that interest is paid annually. The plan will be submitted to the judge and if an uestServicesAssume that interest is paid annually. The plan will be submitted to the judge and, if ap-proved, Hoxworth will be required to pay a trustee the amount that will be required tofund the plan. a. Use linear programming to find the minimum cash settlementnecessary to fund the annual paymentsLet F= total funds required to meet the six years of paymentsG1= units of government security 1G2= units of government security 2S7investment in savings at the beginning of year 1%3DS2investment in savings at the beginning of year 2%3DS3= investment in savings at the beginning of year 3S4= investment in savings at the beginning of year 4S5= investment in savings at the beginning of year 5Note: All decision variables are expressed in thousands of dollars(A) What are the decision variables?Answer:

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As part of the settlement for a class action lawsuit, Hoxworth Corporation must provi sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 5.125 3

As part of the settlement for a class action lawsuit, Hoxworth Corporation must provi sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 5.125 3

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Concept explainers

Unitary Method

The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.

Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.

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Question

As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide
sufficient cash to make the following annual payments (in thousands of dollars).
Year
1
3
4
6.
Payment
190 215 240 285
315 460
The annual payments must be made at the beginning of each year. The judge will
approve an amount that, along with earnings on its investment, will cover the annual
payments. Investment of the funds will be limited to savings (at 4% annually) and
government securities, at prices and rates currently quoted in The Wall Street Journal.
Hoxworth wants to develop a plan for making the annual payments by investing in the
following securities (par value 5 $1000). Funds not invested in these securities will be
placed in savings.
Security
Current Price
Rate (%)
Years to Maturity
$1055
$1000
6.750
3.
5.125
4.
Assume that interest is paid annually. The plan will be submitted to the judge and if an

uest
Services
Assume that interest is paid annually. The plan will be submitted to the judge and, if ap-
proved, Hoxworth will be required to pay a trustee the amount that will be required to
fund the plan. a. Use linear programming to find the minimum cash settlement
necessary to fund the annual payments
Let F
= total funds required to meet the six years of payments
G1
= units of government security 1
G2
= units of government security 2
S7
investment in savings at the beginning of year 1
%3D
S2
investment in savings at the beginning of year 2
%3D
S3
= investment in savings at the beginning of year 3
S4
= investment in savings at the beginning of year 4
S5
= investment in savings at the beginning of year 5
Note: All decision variables are expressed in thousands of dollars
(A) What are the decision variables?
Answer:

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