Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Type of Loan/Investment Annual Rate of Return (%) Automobile loans 9 Furniture loans 11 Other secured loans 12 Signature loans 13 Risk-free securities 10
Type of Loan/Investment Annual Rate of Return (%) Automobile loans 9 Furniture loans 11 Other secured loans 12 Signature loans 13 Risk-free securities 10 The credit union will have $2,600,000 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 sans). 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 $2,600,000 be allocated to each of the loan/investment alternatives (in dollars) to maxim total annual retur Automobile loans Furniture loans 234000 286000 Other secured loans 312000 Signature loans 338000 Risk-free securities 260000 What is the projected total annual return (in dollars)? $ 159900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started