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loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 6 0 % of the amount allocated to

loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans.
Let H= amount allocated to home loans
P= amount allocated to personal loans
A = amount allocated to automobile loans
(b) How much should be allocated to each type of loan?
What is the total annual return?
If required, round your answer to nearest whole dollar amount.
3
What is the annual percentage return?
If required, round your answer to two decimal places.
3%
(c) If the interest rate on home loans increases to 9%, would the amount allocated to each type of loan change?
D
Explain.
An increase to 9%
(d) Suppose the total amount of new funds available is increased by $10,000. What effect would this have on the total annual return? Explain.
If required, round your answer to nearest whole dollar amount.
An increase of $10,000 to the total amount of funds available would increase the total annual return by $
If required, round your answer to nearest whole dollar amount.
3
How much would the annual percentage return change?
If required, round your answer to two decimal places.
Q%
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