You now have $1000. At the end of every year, you add $1000 to the investment from your work savings. The following investments are available to you during the next three years:
INVESTMENT A. Every dollar invested now yields $0.20 a year from now and $1.25 three years from now.
INVESTMENT B. Every dollar invested now yields $0.10 a year from now and $1.40 two years from now.
INVESTMENT C. Every dollar invested a year from now yields $ 1.60 three years from now.
During each year uninvested cash can be placed in money market funds, which yield 8% interest per year. At most 30% of the total dollar amount invested can be in A, at least 25% in B, and at most 40% in C.
Maximize Dollars in the money market fund after three years.
x0 = Dollars in the money market fund after initial transactions
x1 = Dollars in the money market fund after one year
x2 = Dollars in the money market fund after two years
x3 = Dollars in the money market fund after three years.
A = Dollars of investment A purchased
B = Dollars of investment B purchased
C = Dollars of investment C purchased.
You now have $2000
Or, x0 = ________________________________ (remember, we can’t invest in C until later)
The following investments are available to you during the next three years:
INVESTMENT A: Every dollar invested now yields $0.20 a year from now and $1.25 three years from now. INVESTMENT B: Every dollar invested now yields $0.10 a year from now and $1.40 two years from now. INVESTMENT C: Every dollar invested a year from now yields $ 1.60 three years from now. (remember, we can’t invest in C until later).During each year uninvested cash can be placed in money market funds, which yield 8% interest per year.
x1 = ___________________________________________
x2 = ___________________________________________ ,
x3 = _________________________________________
At most 30% of the total dollar amount invested can be in A,
A ≤ ____________________________________
at least 25% in B,
______________________________________________
and at most 40% in C
___________________________________________________
Standard nonnegativity constraints are _______________________________________ __________________________for all these variables
Objective function is ?: ________________________________________________
Which constraint you need to change so that you investment earn even more?
In English/Algebra format:
INVESTMENT A. Every dollar invested now yields $0.20 a year from now and $1.25 three years from now.
INVESTMENT B. Every dollar invested now yields $0.10 a year from now and $1.40 two years from now.
INVESTMENT C. Every dollar invested a year from now yields $ 1.60 three years from now.
During each year uninvested cash can be placed in money market funds, which yield 8% interest per year. At most 30% of the total dollar amount invested can be in A, at least 25% in B, and at most 40% in C.
Maximize Dollars in the money market fund after three years.
x0 = Dollars in the money market fund after initial transactions
x1 = Dollars in the money market fund after one year
x2 = Dollars in the money market fund after two years
x3 = Dollars in the money market fund after three years.
A = Dollars of investment A purchased
B = Dollars of investment B purchased
C = Dollars of investment C purchased.
You now have $2000
Or, x0 = ________________________________ (remember, we can’t invest in C until later)
The following investments are available to you during the next three years:
INVESTMENT A: Every dollar invested now yields $0.20 a year from now and $1.25 three years from now. INVESTMENT B: Every dollar invested now yields $0.10 a year from now and $1.40 two years from now. INVESTMENT C: Every dollar invested a year from now yields $ 1.60 three years from now. (remember, we can’t invest in C until later).During each year uninvested cash can be placed in money market funds, which yield 8% interest per year.
x1 = ___________________________________________
x2 = ___________________________________________ ,
x3 = _________________________________________
At most 30% of the total dollar amount invested can be in A,
A ≤ ____________________________________
at least 25% in B,
______________________________________________
and at most 40% in C
___________________________________________________
Standard nonnegativity constraints are _______________________________________ __________________________for all these variables
Objective function is ?: ________________________________________________
In English/Algebra format: