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How to solve the following using excel: home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed
How to solve the following using excel: 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.
amount allocated in dollars.
Max
st
Available investment funds
Minimum home loan amount
Maximum personal loan amount
b How much in dollars should be allocated to each type of loan?
home loans $
personal loans
auto loans
$
What is the total annual return in dollars
$
What is the annual percentage return? Round your answer to two decimal places.
c If the interest rate on home loans increases to would the amount allocated to each type of loan change? Explain.
Since i: within the allowable range, the amount allocated to each type of loan obtained in part b will not change.
d Suppose 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 $
e
How much would the annual percentage return change? Round your answer to two decimal places.
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