43. During the early 1970s, the political scandal Watergate shook the United Sta

Question

43. During the early 1970s, the political scandal Watergate shook the United States and toppled a presidency. While there were many aspects to the episode (robbery, enemies lists, abuse of power, cover-ups, etc.), a key component was the “laundering” of funds from big money contributors to campaign coffers. This practice consists of channeling a large “gift” of money through various banks and individuals so that its source cannot be traced. Unfortunately, such activities continue today as evidenced by congressional investigations beginning in 1997.

Suppose millionaire I. S. Halverson has $5000 (in reality, he would probably have 10 or 100 times this amount) that he would like to donate “anonymously” to the Independent National Party (INP). He might first split the money up in smaller units and deposit the money in several bank accounts spread throughout the world. Money from these accounts could be mixed or further divided and sent to other accounts or individuals, who, in turn, would do the same, until several checks for $1000 or less eventually arrive at party headquarters. To avert suspicion, a limit has been placed on the amount of each transaction between intermediaries. These limits are given in the network at the top of the next page depicting I. S. Halverson, the intermediaries, and the INP. Given these limitations, how much of the $5000 can I. S. Halverson launder to the INP? (Note: The federal government employs management scientists who also use such models to help determine transaction limits that should be monitored.)

43. Dring he early 1970s, the polirical scandal Warergare shook the Unired Srares and mppled a presidency. While there were many aspects to the episode (rohhery enemies lisrs, ahuse of power, cover-nps, err.),a key component was th money contribiors m campaign coffers. l'his pracrice consists of channeling a lare"gf" of money throngh varions hanks and individmals so rhar is souce cannor be traced. Unfort?narely, snch acriviries continne today as e "lanndering" of finds from hig 1997 Suppose millionaire I. S. I lalverson has $501X) (in realiry, he would prohably have 1 or 10) rimes this amoimr) rhar he wonld like to donate "anonymonsly to the Independenr National Parry (INP) Ile mighr firsr split the money in several hank acconnrs spread thronghont the world. Money from these acoomnts comld he mived or frther divided and sent ro orher acconts or individnals, who, in mrn, world do rhe same, ?ril several checks for S10X0 or less evenrmally arrive at parry headquarrers money up in smaller nnits and deposir the vrspicion, a limir has heen placed on the amount of each transaction herween intermediaries. These limits are given in the nerwork ar the top of the mext page depicring S. I lalverson, the intermediaries, and the INP. Given rhese limitations, how mnch of the S510 can I. S. alverson lannder ro the INP? (Nate: T'he federal government employs managemenr scientists who also use such models o help derermine transaction limirs that shonld be monirored.) 1500 I.S. Halverson INP 1000 Numbers on the arcs represent the maximum amount that can be laundered in either direction.

Explanation / Answer

Answer:

Explanation:

For simple logical solution we will go step by step.

Step 1:

Step 2:

No further step is required as no money is being further transfer to any other node.

Total payment to INP from Halverson :

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.