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Question
At time 0, you have $10,000. Investments A and B are available; their cash flows are shown in the table below: Assume that any money not invested in A or B earns interest at an annual rate of 8%. Determine how to maximize your cash on hand at time 3.| Investment | Time 0 | Time 1 | Time 2 | Time 3 |
| A | -$1.00 | $0.20 | $1.50 | $0.00 |
| B | $0.00 | -$1.00 | $0.00 | $1.90 |
Answer
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