Linear Programming (Investment) Example

In this screen cast we set-up our linear programming problem for a simple investment problem example. This is our second example from week 3. A copy of my solutions may be found below.

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[thabanincube]

A8. An entering college student has $5000 to invest now that will be used to begin a small
business upon graduation 4 years in the future. At the beginning of each year he
can invest in 1-, 2-, or 3-year time deposits. The bank he deals with exclusively pays.
10 percent on a 1-year deposit, 22 percent (total) on a 2-year deposit, and 35 percent
(total) on a 3-year deposit. Formulate a linear programming model to determine how to
maximize total available cash at the end of the fourth year. There are severe penalties
for early withdrawal of funds.