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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

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
8
Furniture loans
10
Other secured loans
11
Signature loans
12
Risk-free securities
9
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, 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.
We want to maximize total annual return.
Determine the number of decision variables.
Group of answer choices
5
4
6
3
Flag question: Question 2
Question 21 pts
How much should be invested in risk-free securties to maximize total annual return?
Group of answer choices
600000
500000
630000
170000
Flag question: Question 3
Question 31 pts
How much should be allocated to automobile loans to maximize total annual return?
Group of answer choices
630000
170000
140000
460000
Flag question: Question 4
Question 41 pts
What is the projected total annual return?
Group of answer choices
188800
200000
198000
150000
Flag question: Question 5
Question 51 pts
How many constraint(s) are binding?
Group of answer choices
5
1
4
3
Flag question: Question 6
Question 61 pts
What is the projected total annual return if the amount the credit union have to invest increase from $2,000,000 to $2,000,100?
Group of answer choices
188809.20
188800.09
198900.09
200100.09
Flag question: Question 7
Question 71 pts
What are the right-hand side value(s) of all the less than or equal to (
<=
) constraints?
Group of answer choices
0
1
2
3
Flag question: Question 8
Question 81 pts
What is the allowabe increase for right-hand size of the following constraint for which the shadow price remains valid?
Constraint: Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).
Group of answer choices
460000
140000
500000
250000

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