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MutuFund is planning to allocate $2,000,000 funds to Title loans, Payday loans, Unsecured Personal loans, and Secured Personal loans. The annual rate of return (RoR)

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MutuFund is planning to allocate $2,000,000 funds to Title loans, Payday loans, Unsecured Personal loans, and Secured Personal loans. The annual rate of return (RoR) of each type of loan is shown in table below. The management of MutuFund has decided to allocate at least 25% of total funds to Title loans. In addition, the total allocation to Secured and Unsecured Personal loans cannot exceed 75% of total funds. Furthermore, the amount allocated to Payday loans should be at least 30% of amount allocated to Title loans. Type of loan Unsecured Personal Secured Personal Payday loans Title loans loans loans Rate of Return 12% 8% 9% 11% 1 Page a. Formulate a linear optimization model to determine the optimal amount of funds that should be allocated to each type of loan to maximize the total annual return for the $2 million funds. Write down the decision variables, objective function, and constraints. b. Implement the optimization model in Excel spreadsheet and use the solver to obtain the optimal solution. How much should be allocated to each type of loan? What is the total annual return? What is the annual percentage return? Create screenshots of your Excel model and solver dialog box and include them in your report c. Suppose that the rate of return on Title loans increases to 13%. How does the amount allocated to each type of loan, total annual return, and annual percentage return change? Create screenshots of your Excel model and solver dialog box and include them in your report

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