Problem $403($Algorithmic$)$

The employee credit union at State Unlversity is planning the allocation of funds foc the coming year. The credit union makes faur types of loans to its members. In addition, the credit union invests in risk$-$free securities to stabilize income. The various revenueproducing investments topether with annual rates of roturn are as follows:

$\backslash$table$[[$Type of Loan$/$Investment$,$Annual Rate of Return $(\%)],[$Autnmobile loans,$8],[$Furniture loans,$10],[$Other secured loans,$11],[$Signature loans,$12],[$Rusk$-$free securities$,9]]$

The credit union will have $$1\mathrm{.}4$ mikion available for investment during the coming year. State laws and credit union policies impose the following restrictions on the compesition of the loans and investments.

Pisk$-$free securities may not exceed $30\%$ of the tatal funds available for investment.

Slignature loans may not exceed $10\%$ of the funds invested in aif loans $($actomobile$,$ furniture, other secured, and signature loans$).$

Furniture loans pius other secured loans may not exceed the autemobile loans.

Other secured loans plus slgnature loans may not exceed the funds invested in risk$-$free securities$.$

How should the $$1\mathrm{.}4$ million be allocated to each of the loany$/$nvestment alternatives to maximize total annual return? Round your answers to the nearest dollar.

$\backslash$table$[[$Sutomobile Loans,$5,],[$Furniture Loans,$$,],[$Other Secured Loans,$5,],[$Signature Loans,$$,],[$Rusk$,$ Free Loans,$$,]]$

What is the projected total annual retum? Round your anwwer to the nearest dollar.