5.PT. PLN has $140000 to invest. The alternative investments and the corresponding annual returns are SUN (8.5%), CDs (5%), T-bills (6,5%) and stocks (13%). PT PLN wants to maximize the investment return. The following guidelines have been established for diversifying the investments and lessening the risk : A.No more than 30% of total investment should be in SUN B.The amount invested in the CDs should not exceed the amount in the other 3 alternatives C.At least 40% of the investment should be in T-bills and CDs D. To be safe, more should be invested in CDs and T-bills than in SUN and the stocks, by a ratio a least 1,2 to 1. Formulate the LP model for PT. PLN

Is this a good investment in terms of the internal rate of return? 9) John's annual income in 2002 was $52,000. In 2011 John earns $63,000 per year. The CPI was 96 in 2002 and now. In real terms, is John better off now than he was in 2002?

Keystone can only properly market a limited number of properties.  They are trying to figure out which property they should select to add to their portfolio among four candidates (and in so doing, gain some insight into how to make such decisions in the future).  There is some uncertainty as the selling price (and therefore commission/profit) depends on the state of the real estate market 6 months in the future.   Based on their experience, Keystone has provided an estimate of selling prices for a “good” real estate market and a “bad” real estate market for the four candidate properties (see Table 1).  Table 1: Sales price (in millions of $) Alternatives Bad Market Good Market Property 1 2.1 3.7 Property 2 1.7 3.8 Property 3 2.8 2.6 Property 4 2.2 2.4   Even with these estimates, though, Keystone managers are unsure which property to choose.  Keystone managers consider themselves to be optimistic about the future, but would like to…

The APR for loans can also be approximated (however, not within the  1 4  of 1% accuracy required by Regulation Z†) by using the following formula: APR =  2mI P(n + 1)   where m  =  the number of payment periods per year I  =  the interest (or finance charge) P  =  the principal (amount financed) n  =  the number of periodic payments to be made. Thus, if  m = 12, I = $264, P = $1200 and n = 30, APR =  2mI P(n + 1)  =  2 × 12 × 264 1200 × 31  = 17%. Use the APR formula to find the APR to one decimal place. (Assume m = 12.) AmountFinanced   FinanceCharge   Number ofPayments $4000   $332   12  %State the difference between the answer obtained by the formula and the answer obtained using the True Annual Interest Rate (APR) table. (Round your answer to one decimal place.) %