Saturday

April 19, 2014

April 19, 2014

Posted by **Jessica** on Wednesday, September 19, 2012 at 7:56pm.

Graduate student Luke currently has $400 in cash. At the beginning of months 1, 2, 3, and 4, Luke receives revenues from his research assignment, after which he pays bills (see Table). Any money left over is to be invested. If invested for one month, Luke receives the interest rate of 0.1% per month. If invested for two months, he receives an interest rate of 0.5% per month.

Month Revenues ($) Expenses ($)

1 400 600

2 800 500

3 300 500

4 300 250

A. Formulate a linear program to determine an investment strategy that maximizes cash on hand at the beginning of month 5 (or equivalently at the end of Month 4). Please clearly define all terms in your model. (Note, you are not required to solve the model, just formulate it). (15 points)

B. Luke is now able to postpone monthly payments; however, a penalty of 1% is charged on the amount postponed. He can postpone payments by only one month. Formulate a linear program to determine an investment strategy that maximizes cash on hand at the beginning of month 5.

(10 points)

**Related Questions**

Math-linear programming - Which of the following mathematical relationships ...

business - When setting up a production set, what else is important to financial...

calculus - 1)Which term best describes the linear programming situation ...

Pre-calculus - 1)Which term best describes the linear programming situation ...

Linear programming - Which of the following mathematical relationships could be...

Pre-Calculus check answers - Describe the linear programming situation for this ...

Pre-Calculus-check answers - Describe the linear programming situation for this ...

Pre-calculus-check answers - Describe the linear programming situation for this ...

Math: Linear Programming - Describe the linear programming situation for this ...

chemistry 101 - I have a question that I am not sure how to even start. A 15.0 g...