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Adirondack Savings Bank ( ASB ) has $ 1 million in new funds that must be allocated to home loans, personal loans, and automobile loans.
Adirondack Savings Bank ASB has $ million in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are for home loans, for personal loans, and for automobile loans. The bank's planning committee has decided
that at least of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed of the amount allocated to automobile loans.
a Formulate a linear programming model that can be used to determine the amount of funds ASB should allocate to each type of loan to maximize the total annual return for the new funds. If the constant is it must be entered in the box. If your answer is zero enter
Let amount allocated to home loans
amount allocated to personal loans
amount allocated to automobile loans
b How much should be allocated to each type of loan?
tableLoan type,AllocationHome$
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