Formulate the problem with Linear Programming - MathOverflow [closed] most recent 30 from http://mathoverflow.net 2013-05-22T16:11:14Z http://mathoverflow.net/feeds/question/74720 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://mathoverflow.net/questions/74720/formulate-the-problem-with-linear-programming Formulate the problem with Linear Programming zf xiao 2011-09-07T06:31:37Z 2011-09-07T06:31:37Z <p>Stuck in this problem for quite a while. Anyone can offer some help? The problem is as follows:</p> <p>Fred has \$5000 to invest over the next five years. At the beginning of each year he can invest money in one- or two-year time deposits. The bank pays 4% interest on one-year time deposits and 9 percent (total) on two-year time deposits. In addition, West World Limited will offer three-year certificates starting at the beginning of the second year.These certificates will return 15% (total). If Fred reinvest his money that is available every year, formulate a linear program to show him how to maximize his total cash on hand at the end of the fifth year.</p> <p>it is actually problem 1.1 in the book "Linear Programming and Network flows".</p>