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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

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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 Type of loan/Investment Annual Rate of Return (%) Automobile loans Furniture loans 10 Other secured loans Signature loans 11 Rusk free securities The credit union will have s9 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the Joans and investments Risk free secunties may not exceed 35 of the total funds available for investment Signature toons may not exceed 12% of the funds invested in biltons (automobile, future, other secured, and signature foars) Furniture loons plus other secured loans may not exceed the automobiles Other secured loans plus signature lors may not exceed the funds invested in a free securities How should the 51 million be allocated to each of the loan investment alternatives to maximize total annual return Fund Allocation Type of loan/investment Automobile loans Furniture loans Other secured loans Signature loans Risk free securities What is the projected total annual return Annu Return

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