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A locally owned bank has $28 million in capital to fund home mortgage and automobile loans in the community. Home loans are typically written at
A locally owned bank has $28 million in capital to fund home mortgage and automobile loans in the community. Home loans are typically written at 4% annual rate and automobile loans are funded, on average, at 6% annual rate. Management wants to have at least three times as much money invested in the longer term home mortgages as in the comparatively shorter term automobile loans. To maximize total returns on loans made by the bank, P, state the objective function, using x to represent the total amount lent in home mortgages and y to represent the total amount lent in automobile loans
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