Solve it on Excel solver as well! Ann is considering her investment policy for the next 4 years. She will have £750000 available at the beginning of each of the next four years. Each year Ann expects to have available both certificates of deposit returning 3.55% after 1 year and ones returning 10.5% after 2 years. At the beginning of the first year, she will also have an opportunity to make a special investment that would return 30.2% after four years. She is, however, allowed to invest no more than £4500 into this option. Assume that all funds can be reinvested at maturity. What is the maximal total interest (in pounds) that Ann can earn by the beginning of the fifth year?

Solve it on Excel solver as well! Ann is considering her investment policy for the next 4 years. She will have £750000 available at the beginning of each of the next four years. Each year Ann expects to have available both certificates of deposit returning 3.55% after 1 year and ones returning 10.5% after 2 years. At the beginning of the first year, she will also have an opportunity to make a special investment that would return 30.2% after four years. She is, however, allowed to invest no more than £4500 into this option. Assume that all funds can be reinvested at maturity. What is the maximal total interest (in pounds) that Ann can earn by the beginning of the fifth year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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