Linear Programming

What are some examples of personal or professional decisions where constrained optimization might be applied? You don't have to formulate the mathematical problem, just discuss what the decision variables would be, how would you measure success (i.e., what would you maximize or minimize), and what conditions might the decision ...continues

Linear Programming : Solving Graphically

1) z = 5x + 2y Minimize subject to: 2x + 3y > 6 4x + y > 6 x > 0 y > 0

Simplex Method

Consider the following maximum problem in standard form: Maximize Z = 8X1 + 2X2 + 3X3 subject to the constraints X1 + 3X2 + 2X3 < 10 4X1 + 2X2 + 3X3 < 8 X1 > 0, X2 > 0, X3 > 0 (a) Rewrite the two constraints as equations by adding slack variables S1 and S2. (b) Set up the initial simplex tableau for t ...continues

Time Value of Money

What does that term "time value of money" mean and how does it relate to the calculation of interest, present values of annuities, and payments to amortize a loan?

Interest and Taxes

1. A resident of the United States has a base income of $23,000 after adjustments for deductions. New legislation by Congress would tax this income at a rate of 11 percent. What tax would be due? 2. Find the simple interest on $8537 at 10% per annum for 8 months. 3. Find the simple exact interest on $24,281 at 12 3/4% ...continues

Mathematics of Finance

What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years? Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months. Find the present value of $10,425 in 39 months at 13.75% compounded monthly. Find the value of an annuity where $275 is ...continues

Mathematics of Finance

Find the simple interest 1) $4902 at 9.5% for 11 months Find the amount of interest earned 2) $3954 at 8% compounded annually for 12 years Find the present value 3) $17,650 in 4 years, 8% compounded quarterly Find the future value 4) $500 deposited at the end of each 6-month period for 8 years; money earns 6% co ...continues

Mathematics in Finance - Buying and Selling a House

The Zambrano family bought a house for $91,000. They paid $20,000 down and took out a 30-year mortgage for the balance at 9%. a. Find their monthly payment. b. How much of the first payment is interest? After 180 payments, the family sells its house for $136,000. They must pay closing costs of $3700 plus 2.5% of the sale pr ...continues

Mathematics in Finance

Show your work (Show the formula, the values of the variables in the formula, and the result of the formula). Final answers should be rounded to the nearest cent (two decimal places). Beware of rounding intermediate results. 1. A resident of the United States has a base income of $23,000 after adjustments for deductions. N ...continues

Statistics - Range. Standard Deviation

Find the range and standard deviation for: 14, 17, 18, 19, 32. Find the following area under the standard normal curve: between z=-1.88 and z=2.10. Find a z-score such that 8% of the area under the curve is to the right of z.