Question: A credit union wants to make investments in the following:

The firm will have $2,500,000 available for investment during the coming year. The following restrictions apply:

 Risk-free securities may not exceed 30% of the

total funds, but must comprise at least 5% of the

total.

 Signature loans may not exceed 12% of the funds

invested in all loans (vehicle, consumer, other

secured loans, and signature loans).

 Consumer loans plus other secured loans may not

exceed the vehicle loans.

 Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

How should the $2,500,000 be allocated to each alternative to maximize annual return?

1. Write the decision variables and what they represent. For example, X ₁ = …..
   
2. Write the objective function and the constraints as they are worded above.
   
3. Re-write the constraints in the form needed to solve on the computer.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document