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Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions of dollars and y is auto loans in millions of dollars. On the average, homeowner loans have a 8% annual rate of return, whereas auto loans yield a 14% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater chan or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category to maximize its returns P in millions of dollars. Maximize P = subject to the constraints total loans distribution of loans y 2 0

Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions of dollars and y is auto loans in millions of dollars. On the average, homeowner loans have a 8% annual rate of return, whereas auto loans yield a 14% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater chan or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category to maximize its returns P in millions of dollars. Maximize P = subject to the constraints total loans distribution of loans y 2 0

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 33E
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Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions of dollars and y is auto loans in millions of dollars. On the average, homeowner loans have a 8% annual rate of return, whereas auto loans yield a 14% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater chan or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category to maximize its returns P in millions of dollars. Maximize P = subject to the constraints total loans distribution of loans y 2 0
Transcribed Image Text:Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions of dollars and y is auto loans in millions of dollars. On the average, homeowner loans have a 8% annual rate of return, whereas auto loans yield a 14% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater chan or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category to maximize its returns P in millions of dollars. Maximize P = subject to the constraints total loans distribution of loans y 2 0
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