Winslow Savings Has $20 Million Available for Investment

question 40

Essay

Winslow Savings has $20 million available for investment. It wishes to invest over the next four months in such a way that it will maximize the total interest earned over the four month period as well as have at least $10 million available at the start of the fifth month for a high rise building venture in which it will be participating.
For the time being, Winslow wishes to invest only in 2-month government bonds (earning 2% over the 2-month period) and 3-month construction loans (earning 6% over the 3-month period). Each of these is available each month for investment. Funds not invested in these two investments are liquid and earn 3/4 of 1% per month when invested locally.
Formulate and solve a linear program that will help Winslow Savings determine how to invest over the next four months if at no time does it wish to have more than $8 million in either government bonds or construction loans.

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Definitions:

Net Sales

The total revenue generated from goods and services, minus returns, allowances, and discounts.

Leadership Development

Leadership development encompasses the activities and training programs designed to foster growth in individuals' ability to lead others effectively.

American Society of Training and Development

A professional association dedicated to the field of training and development, focusing on workplace learning and performance.

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