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A credit union is planning the allocation of funds for the coming year. The credit makes four types of loans to its members. In addition,
A credit union is planning the allocation of funds for the coming year. The credit makes four types of loans to its members. In addition, the credit union invests in risk-free securities. The rates of return on the different investments are indicated below. The credit union will have $ 2 million available for investment. Various laws stipulate the following restrictions. a. Risk free securities may not exceed 30 % of total funds. b. Signature loans may not exceed 10 % of the funds invested in all loans (automobile, furniture, other secured and signature loans). c. Furniture loans plus other secured loans may not exceed the automobile loans. d. Other secured loans plus signature loans may not exceed the funds invested in risk free securities. Use LP to determine the optimal allocation of funds. The solver dialog box must be populated and I should be able to execute solver. Download the answer report. A template is provided below for possible use
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