1) A credit union wants to make investments in the following:

The firm will have $2,000,000 available for investment during the coming year. Answer the following questions:

* (a)Write the constraint that indicates Signature loans may not exceed 12% of the funds invested in all loans (vehicle, consumer, other secured loans, and signature loans)

* (b)Write the constraint that indicates Consumer loans plus other secured loans may not exceed the vehicle loans

* (c)Write the constraint that indicates other secured loans plus signature loans may not exceed the funds invested in risk free securities.

* (d)To solve this problem we should:

Maximize

Subjected to:

* (e)After solving this problem with Excel or QM write your answers that includes the value of the objective function, and all decision variables below.

Annual Rate of Return (%) Type of Investment Vehicle loans Consumer loans Other secured loans Signature loans Risk-free securities 12