Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Having difficulty setting this up in excel to work with solver using Simplex LP. I'm not familiar with the interest terminology and how to setup the...
Amount ($1000)
20
20
25
25
30
35
35
40
40
50
To avoid unpleasant surprises, the couple opts to invest the money very safely. The following options are open to them:
- Insured savings with 7.5% annual yield.
- Six-year government bonds that yield 7.9% and have a current market price equal to .98 face value.
- Nine-year municipal bonds yielding 8.5% and having a current market price equal to 1.02 face value (you pay $1.02 to buy the bond worth $1.)
How should the couple invest the money over the next 10 years? (Hint: Answer is $468,500)
I have an excel file I've been working with, but don't see a way to upload it. I'm sure my formulas are completely off, not understanding the banking side of the interest calculations. If you let me know your email address, I will send the file.
