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At the beginning of month 1, Finco has $400 in cash.  At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills (see Table 2 below).  Any money left over may be invested for one month at the interest rate of 0.1% per month; for two months at 0.5% per month; for three months at 1% per month; or for four months at 2% per month.  Use linear programming to determine an investment strategy that maximizes cash on hand at the beginning of month 5.  Formulate an LP to maximize Finco’s profit.

At the beginning of month 1, Finco has $400 in cash.  At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills (see Table 2 below).  Any money left over may be invested for one month at the interest rate of 0.1% per month; for two months at 0.5% per month; for three months at 1% per month; or for four months at 2% per month.  Use linear programming to determine an investment strategy that maximizes cash on hand at the beginning of month 5.  Formulate an LP to maximize Finco’s profit.

Database System Concepts
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
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At the beginning of month 1, Finco has $400 in cash.  At the beginning of months 1, 2, 3, and 4, Finco receives certain revenues, after which it pays bills (see Table 2 below).  Any money left over may be invested for one month at the interest rate of 0.1% per month; for two months at 0.5% per month; for three months at 1% per month; or for four months at 2% per month.  Use linear programming to determine an investment strategy that maximizes cash on hand at the beginning of month 5.  Formulate an LP to maximize Finco’s profit.

### Table 2: Monthly Revenues and Bills The table below presents the revenue and bill data for a four-month period. Each row corresponds to a different month, with columns detailing the revenues earned and the bills owed in that particular month. The revenues and bills are denoted in US dollars. | Month | Revenues ($) | Bills ($) | |-------|---------------|-----------| | 1 | 400 | 600 | | 2 | 800 | 500 | | 3 | 300 | 500 | | 4 | 300 | 250 | - **Month 1:** The revenue is \$400, while the bills total \$600. - **Month 2:** The revenue sees a significant increase to \$800, and the bills amount to \$500. - **Month 3:** Revenues drop to \$300 and the bills remain at \$500. - **Month 4:** Revenue stays constant at \$300, but there is a decrease in bills to \$250. This table is useful for analyzing the financial performance over these months, understanding trends in revenues and expenses, and planning for future financial management.
Transcribed Image Text:### Table 2: Monthly Revenues and Bills The table below presents the revenue and bill data for a four-month period. Each row corresponds to a different month, with columns detailing the revenues earned and the bills owed in that particular month. The revenues and bills are denoted in US dollars. | Month | Revenues ($) | Bills ($) | |-------|---------------|-----------| | 1 | 400 | 600 | | 2 | 800 | 500 | | 3 | 300 | 500 | | 4 | 300 | 250 | - **Month 1:** The revenue is \$400, while the bills total \$600. - **Month 2:** The revenue sees a significant increase to \$800, and the bills amount to \$500. - **Month 3:** Revenues drop to \$300 and the bills remain at \$500. - **Month 4:** Revenue stays constant at \$300, but there is a decrease in bills to \$250. This table is useful for analyzing the financial performance over these months, understanding trends in revenues and expenses, and planning for future financial management.
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