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Adirondack Savings Bank ( ASB ) has $ 5 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.aFormulate 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. Assume H is the amount allocated on home loans, A is the amount allocated on Auto loans, and P is the amount allocated on personal loans. Write your answers expressing the amount allocated in dollars.Max Incorrect: Your answer is incorrect.stAvailable investment funds Incorrect: Your answer is incorrect.Minimum home loan amount Incorrect: Your answer is incorrect.Maximum personal loan amount Incorrect: Your answer is incorrect.H P A bHow much in dollars should be allocated to each type of loan?home loans$ Correct: Your answer is correct.personal loans$ Correct: Your answer is correct.auto loans$ Correct: Your answer is correct.What is the total annual return in dollars$ Correct: Your answer is correct.What is the annual percentage return? Round your answer to two decimal places. Correct: Your answer is correct. cIf the interest rate on home loans increases to would the amount allocated to each type of loan change? Explain.Since Correct: Your answer is correct. within the allowable range, the amount allocated to each type of loan obtained in part b Correct: Your answer is correct. change.dSuppose the total amount of new funds available is increased by $ What effect would this have on the total annual return? Explain. Round your answer to the nearest dollar.Increasing the amount of new funds available by $ will increase the total annual return in dollars by $ eAssume that ASB has the original $ million in new funds available and that the planning committee has agreed to relax the requirement that at least of the new funds must be allocated to home loans by How much would the annual return change in dollars$ How much would the annual percentage return change? Round your answer to two decimal places.
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Lets approach the problem step by step a Formulate the Linear Programming Model Objective Maximize the total annual return Let H H be the amount alloc...
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