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A business executive has the option to invest money in two plans: Plan A guarantees that...

A business executive has the option to invest money in two plans: Plan A guarantees that each dollar invested will earn $0.70 a year later, and Plan B guarantees that each dollar invested will earn $2 after 2 years. In Plan A, investments can be made annually, and in Plan B, investments are allowed for periods that are multiples of 2 years only. How should the executive invest $100,000 to maximize the earnings at the end of 3 years? Specify the objective function and the constraints.

Could you please explain or show how to solve in Excel with Solver?

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Answer #1

Best suggestion is for furst two years go with plan B and for 3rd year go with Plan A.

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