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Question 5 Formulate but do not solve this exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 11% 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 than or equal to four times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns. Let x be the amount for homewoner loans, and y be the amount for auto loans. Write the objective function, P(x,y), Write the system of inequalities to which the objective function is subjected. O P(xy)=0.11x+0.14y; x+ys20,0.14x-4y20,x20,y20 P(xy)=x+0.14y; 0.1l1x+yS20,x-4y20,x 20,y20 O P(xy)=0.11x+0.14y; x+y<20,x-4y20,x20,y20 O P(xy)=0.14x+0.11y; x+y<20,x-4y20,x20,y20 P(xy)=0.11x+0.14y; x+y220,x-4y20,x20,y20

Question 5 Formulate but do not solve this exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 11% 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 than or equal to four times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns. Let x be the amount for homewoner loans, and y be the amount for auto loans. Write the objective function, P(x,y), Write the system of inequalities to which the objective function is subjected. O P(xy)=0.11x+0.14y; x+ys20,0.14x-4y20,x20,y20 P(xy)=x+0.14y; 0.1l1x+yS20,x-4y20,x 20,y20 O P(xy)=0.11x+0.14y; x+y<20,x-4y20,x20,y20 O P(xy)=0.14x+0.11y; x+y<20,x-4y20,x20,y20 P(xy)=0.11x+0.14y; x+y220,x-4y20,x20,y20

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 34E
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Question 5 Formulate but do not solve this exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 11% 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 than or equal to four times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns. Let x be the amount for homewoner loans, and y be the amount for auto loans. Write the objective function, P(x,y), Write the system of inequalities to which the objective function is subjected. O P(xy)=0.11x+0.14y; x+ys20,0.14x-4y20,x20,y20 P(xy)=x+0.14y; 0.1l1x+yS20,x-4y20,x 20,y20 O P(xy)=0.11x+0.14y; x+y<20,x-4y20,x20,y20 O P(xy)=0.14x+0.11y; x+y<20,x-4y20,x20,y20 P(xy)=0.11x+0.14y; x+y220,x-4y20,x20,y20
Transcribed Image Text:Question 5 Formulate but do not solve this exercise as a linear programming problem. Madison Finance has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 11% 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 than or equal to four times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns. Let x be the amount for homewoner loans, and y be the amount for auto loans. Write the objective function, P(x,y), Write the system of inequalities to which the objective function is subjected. O P(xy)=0.11x+0.14y; x+ys20,0.14x-4y20,x20,y20 P(xy)=x+0.14y; 0.1l1x+yS20,x-4y20,x 20,y20 O P(xy)=0.11x+0.14y; x+y<20,x-4y20,x20,y20 O P(xy)=0.14x+0.11y; x+y<20,x-4y20,x20,y20 P(xy)=0.11x+0.14y; x+y220,x-4y20,x20,y20
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