Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I ONLY NEED THE 2 NEW RESTRAINTS! Thankyou Credit Union Fund Allocation. The employee credit union at State University is planning the allocation of funds

image text in transcribedimage text in transcribed

image text in transcribed

I ONLY NEED THE 2 NEW RESTRAINTS! Thankyou

Credit Union Fund Allocation. The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments, together with annual rates of return, are as follows: The credit union will have $2 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments: - Risk-free securities may not exceed 30% of the total funds available for investment. - Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). - Furniture loans plus other secured loans may not exceed the automobile loans. - Other secured loans plus signature loans may not exceed the funds invested in riskfree securities. In 12-11, suppose the following 2 changes have occurred: - The total amount available for investment is $1.5 million. - An additional constraint is: auto loans plus furniture loans must not exceed 40% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). Write down the corresponding two constraints. Use variable names: A=$ automobile loans F=$ furniture loans O=$ other secured loans S=$ signature loans R=$ "risk free" securities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enron And World Finance A Case Study In Ethics

Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin

1st Edition

1403947635, 978-1403947635

More Books

Students also viewed these Finance questions

Question

Q.No.1 Explain Large scale map ? Q.No.2 Explain small scale map ?

Answered: 1 week ago

Question

2. Describe how technology can impact intercultural interaction.

Answered: 1 week ago

Question

7. Define cultural space.

Answered: 1 week ago