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A bank has set aside a maximum of $25 million for commercial and home loans. Every million dollars in commercial loans requires 2 application forms,
A bank has set aside a maximum of $25 million for commercial and home loans. Every million dollars in commercial loans requires 2 application forms, while every million dollars in home loans requires 3 application forms. The bank cannot process more than 72 application forms at this time. The bank's policy is to loan at least four times as much for home loans as for commercial loans. The bank earns 14% interest on commercial loans and 11% interest on home loans. How should the bank's capital be allotted between commercial and home loans in order to maximize their interest income? million dollars Amount in commercial loans: Amount in home loans: Maximum interest income million dollars million dollars
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