You have 1000 euros to invest. At the beginning of each year, you can invest your available money in three different plans, Plan 1, Plan 2 and Plan 3 (available money means not blocked in a plan). Money put in Plan 1 is blocked for one year. After one year, you total interest rate is 5% (if you invested 100 euros, you will have 105 euros after one year). Money put in Plan 2 is blocked for two years. After two years, you total interest rate is 12% (if you invested 100 euros, you will have 112 euros after two years). Money put in Plan 3 is blocked for three years.Afte

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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You have 1000 euros to invest. At the beginning of each year, you can invest your available money in three different plans, Plan 1, Plan 2 and Plan 3 (available money means not blocked in a plan).

  • Money put in Plan 1 is blocked for one year. After one year, you total interest rate is 5% (if you invested 100 euros, you will have 105 euros after one year).

  • Money put in Plan 2 is blocked for two years. After two years, you total interest rate is 12% (if you invested 100 euros, you will have 112 euros after two years).

  • Money put in Plan 3 is blocked for three years.After three years,you total interestrate is 19%.

    Your planning horizon is 7 years. You want to maximize your available money at the end of the 7th year (again, available money means not blocked in a plan).

What would be the linear programme solving the problem.

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Hi It seems a bit empty. E.g compount intresst are not calculated in there and we should be able to invest partial amounts as well.

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