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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 foans

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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 foans 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 8 Other secured loans 11 Signature loans 12 Riske-free securities 9 The credit union will have 52 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments: Risk-free securities may not exceed 30% of the total funds available for investment Signature loans may not exceed 10% of the funds invested in a loans (automob, furniture, other secured, and signature loans) Furniture loans plus other secured loans may not exceed the automobile loans Other secured loans plus signature loans may not exceed the funds invested in risk-free securities. How should the 2 million be allocated to each of the loan investment alternatives to maximize total annual retur? Type of Loan/Investment Fund Allocation Automobile loans $ 650900 Assignment The credit union will have $2 million available for investment during the coming year State laws and credit union policies impose the following restrictions on the composition of the loans and investments: Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, fumiture, other secured, and signature loans). Furniture dans plus other secured loans may not exceed the automobile loans. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities How thould the $2 millor be allocated to each of the loan investment alteratives to maximize total annual return? Type of Loan/Investment Fund Allocation Automobile loans 650900 Furniture loans 399099 Other secured loans 301802 Signature loans 198198 Risk-free securities 450000 What is the projected to annual return Annual Returns 188964 Wide Fecha Incorrect

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