You now have $10,000, and the following investment plans are available to you during the next three years:  ■ Investment A: Every dollar invested now yields $0.10 a year from now and $1.30 three years...


You now have $10,000, and the following investment plans are available to you during the next three years:

■ Investment A: Every dollar invested now yields $0.10 a year from now and $1.30 three years from now.

■ Investment B: Every dollar invested now yields $0.20 a year from now and $1.10 two years from now.

■ Investment C: Every dollar invested a year from now yields $1.50 three years from now. During each year, you can place uninvested cash in money market funds that yield 6% interest per year. However, you can invest at most $5000 in any one of plans A, B, or C. Determine how to maximize your cash on hand three years from now.



May 22, 2022
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