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5. Butuan City Rural Bank is doing funds planning for next year. The bank has essentially ve different funds uses, each with a different rate
5. Butuan City Rural Bank is doing funds planning for next year. The bank has essentially ve different funds uses, each with a different rate of return, as follows: Signature loans (unsecured) 21% Installment loans on vehicles (secured lien on the vehicle 18% Home Improvement loans (secured with a second deed of trust) 16% All Purpose Loans (secured with liens) 16% Government Securities 12% State banking regulations impose a number of constraints on rural bank's investment portfolio: 1. Signature loans may not exceed 10% of total loans 2. Home improvement loans may not exceed 50% of total secured loans. 3. Signature loans may not exceed the amount invested in government securities. 4- The amount invested in government securities may not exceed 40% of total money invested. The Rural Bank has 25 million to invest next year and wish to maximize the total return on its investment portfolio consistent with banking regulations. Set up the objective function and constraints necessary to solve the
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