Investor has the option of investing his money in two plan

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An investor has the option of investing his money in two plans. Plan A guarantees that each dollar invested will earn 70 cents a year, and plan B guarantees that each dollar invested will earn $2.00 two years from now. In plan B, only investments in odd years (1, 3 and 5) are allowed. How should the investor allocate $100, 000 so that the return at the end of 6 years is maximized? Formulate the L.P model and solve it. 

Reference no: EM131152391

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