Type	Return Rate (Annual %)
Loan: Mortgage (First) Loan: Mortgage (Second) Loan: Commercial Loan: Auto Loan: Renovation Security: Risk-Free	6% 3% 7% 9% 9% 4%

- Agency is diversifying (above)

- Wants to maximize annual return on investments according to restraints:

1. Plan to invest the available $9,000,000 total budget.

2. Security: Risk-Free must contain 10% (at least) of total funds available for investment.

3. Loan: Home Improvement does NOT exceed $800,000.

4. Loan: Mortgage (first) AND (second) must make up at LEAST 60% of all funds invested in all loan types (above).

5. Loan: Mortgage (First) be at least 2x much as funds invested for Loan: Mortgage (Second).

6. Loan: Renovation CAN NOT exceed 40% of funds invested in Loan: Mortgage (First).

7. Loan: Automotive and Loan: Renovation together can NOT exceed Loan: Commercial.

8. Loan: Commercial can NOT exceed 50% of total funds in Loan: Mortgages (both).

Question: USE EXCEL SOLVER SHOW WORK.

- What is the optimal solution?

- Meaning of $9 million max investment shadow price.

- Meaning of constraint 'Security: Risk-Free must contain 10% (at least) of total funds available for investment' shadow price.

- Meaning of reduced cost for Loan: Mortgage (Second)