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Let H = amount allocated to home loans P = amount allocated to personal loans A = amount allocated to automobile loans ( b )
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 Ioan?
What is the total annual return?
If required, round your answer to nearest whole dollar amount.
:
What is the annual percentage return?
If required, 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?
Select your answer
Explain.
d Suppose the total amount of new funds available is increased by $ What effect would this have on the total annual return? Explain.
If required, round your answer to nearest whole dollar amount.
An increase of $ to the total amount of funds available would increase the total annual return $
If required, round your answer to nearest whole dollar amount.
How much would the annual percentage return change?
If required, round your answer to two decimal places.
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