LP Formulation

  • Thread starter jetoso
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jetoso
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A businessman has the option of investing his money in two plans. Plan A guarantees that each dollar invested will earn 70 cents a year hence, and plan B guarantees that each dollar invested will earn $2.00 two years hence. In plan B, only investments for periods that are multiples of 2 years are allowed. How should he invest $100,000 to maximize the earnings at the end of 3 years? Formulate the problem as a linear programming model.
Any suggestions?
 

Answers and Replies

  • #2
Hurkyl
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Surely you've had a thought about how to begin this, even if you couldn't figure out how to carry it through...
 

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