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As part of the settlement for a class action lawsuit, Hoxworth Corporation must provi sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 5.125 3

As part of the settlement for a class action lawsuit, Hoxworth Corporation must provi sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 5.125 3

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 4 6. Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 3. 5.125 4. Assume that interest is paid annually. The plan will be submitted to the judge and if an
Transcribed Image Text:As part of the settlement for a class action lawsuit, Hoxworth Corporation must provide sufficient cash to make the following annual payments (in thousands of dollars). Year 1 3 4 6. Payment 190 215 240 285 315 460 The annual payments must be made at the beginning of each year. The judge will approve an amount that, along with earnings on its investment, will cover the annual payments. Investment of the funds will be limited to savings (at 4% annually) and government securities, at prices and rates currently quoted in The Wall Street Journal. Hoxworth wants to develop a plan for making the annual payments by investing in the following securities (par value 5 $1000). Funds not invested in these securities will be placed in savings. Security Current Price Rate (%) Years to Maturity $1055 $1000 6.750 3. 5.125 4. Assume that interest is paid annually. The plan will be submitted to the judge and if an
uest Services Assume that interest is paid annually. The plan will be submitted to the judge and, if ap- proved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan. a. Use linear programming to find the minimum cash settlement necessary to fund the annual payments Let F = total funds required to meet the six years of payments G1 = units of government security 1 G2 = units of government security 2 S7 investment in savings at the beginning of year 1 %3D S2 investment in savings at the beginning of year 2 %3D S3 = investment in savings at the beginning of year 3 S4 = investment in savings at the beginning of year 4 S5 = investment in savings at the beginning of year 5 Note: All decision variables are expressed in thousands of dollars (A) What are the decision variables? Answer:
Transcribed Image Text:uest Services Assume that interest is paid annually. The plan will be submitted to the judge and, if ap- proved, Hoxworth will be required to pay a trustee the amount that will be required to fund the plan. a. Use linear programming to find the minimum cash settlement necessary to fund the annual payments Let F = total funds required to meet the six years of payments G1 = units of government security 1 G2 = units of government security 2 S7 investment in savings at the beginning of year 1 %3D S2 investment in savings at the beginning of year 2 %3D S3 = investment in savings at the beginning of year 3 S4 = investment in savings at the beginning of year 4 S5 = investment in savings at the beginning of year 5 Note: All decision variables are expressed in thousands of dollars (A) What are the decision variables? Answer:
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