Help meeeeee The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members.In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return areas follows.Type of Loan/InvestmentAnnual Rate of Return (%)Automobile loans7Furniture loans9Other secured loans10Signature loans11Risk-free securities8The credit union will have $2,400,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on thecomposition 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 loans).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 $2,400,000 be allocated to each of the loan/investment alternatives to maximize total annual return?Automobile loans$Furniture loans$Other secured loans $Signature loans$Risk-free securities$What is the projected total annual return?$

Projected Total Annual return is the sum of investment return which is invested in various project.…

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return a as follows. Type of Loan/Investment Annual Rate of Return (%) Automobile loans 7 Furniture loans 9 Other secured loans 10 Signature loans 11 Risk-free securities 8 The credit union will have $2,400,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on composition of the loans and investments.

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return a as follows. Type of Loan/Investment Annual Rate of Return (%) Automobile loans 7 Furniture loans 9 Other secured loans 10 Signature loans 11 Risk-free securities 8 The credit union will have $2,400,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on composition of the loans and investments.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter11: Linear Optimization Models

Section: Chapter Questions

Problem 11P: The employee credit union at State University is planning the allocation of funds for the coming...

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The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans 10 Other secured loans 11 Signature loans 12 Risk-free securities 9 The credit union will have $2 million 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…
The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in riskfree securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans 10 Other secured loans 11 Signature loans 12 Riskfree securities 9 The credit union will have $2,000,000 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.•Riskfree securities may not exceed 30% of the total funds available for investment.•Signature loans may…
A bank is attempting to determine where its assets should be invested during the current year. At present, $500,000 is available for investment in bonds, home loans, auto loans, and personal loans. The annual rates of return on each type of investment are known to be the following: bonds, 10%; home loans, 16%; auto loans, 13%; and personal loans, 20%. To ensure that the bank’s portfolio is not too risky, the bank’s investment manager has placed the following three restrictions on the bank’s portfolio:■ The amount invested in personal loans cannot exceed the amount invested in bonds.■ The amount invested in home loans cannot exceedthe amount invested in auto loans.■ No more than 25% of the total amount invested can be in personal loans. Help the bank maximize the annual return on its investment portfolio.
. A bank is attempting to determine where its assets should be invested during the currentyear. At present, $500,000 is available for investment in bonds, home loans, auto loans,and personal loans. The annual rate of return on each type of investment is known to be:bonds, 10%; home loans, 16%; auto loans, 13%; personal loans, 20%. To ensure that thebank’s portfolio is not too risky, the bank’s investment manager has placed the followingthree restrictions on the bank’s portfolio:a. The amount invested in personal loans cannot exceed the amount invested inbonds.b. The amount invested in home loans cannot exceed the amount invested in autoloans.c. No more than 25% of the total amount invested may be in personal loans.The bank’s objective is to maximize the annual return on its investment portfolio.Formulate an LP that will enable the bank to meet this goal.
As Customer Relationship Manager of a bank, one of your clients has asked for your advice concerning GH¢50,000 which she wishes to invest for five years. The two investment alternatives identified are to use a Bank Account where 24 percent per annum interest rate is compounded quarterly and a Savings Fund where the 36 percent per annum interest rate is compounded semi-annually. i. Calculate the size of the Bank Account and Savings Fund investments at the end of five years. ii. Calculate the effective annual interest rate of the Bank Account and Savings Fund investments
I need help with question d and e please. Adirondack Savings Bank (ASB) has $1,000,000 in new funds that must be allocated to home loans, personal loans, and automobile loans. The annual rates of return for the three types of loans are 7% for home loans, 12% for personal loans, and 9% for automobile loans. The bank's planning committee has decided that at least 40% of the new funds must be allocated to home loans. In addition, the planning committee has specified that the amount allocated to personal loans cannot exceed 60% of the amount allocated to automobile loans. a. Formulate a linear programming model that can be used to determine the amount of funds ASB should allocate to each type of loan in order to maximize the total annual return for the new funds. b. How much should be allocated to each type of loan? What is the total annual return? What is the annual percentage return? c. If the interest rate on home loans increased to 9%, would the amount allocated to each type of loan…
The local bank is currently offering a new investment product, where deposits earninterest according to the following scheme:• An interest rate of r is applied on the 15th day of each month.• A bonus interest rate of t is applied on the 30th day of every odd month. (Theseare the months of January, March, May, July, September, and November.)1. Suppose that you want to deposit an amount of P dollars into the account twice:on January 1 and August 1 in 2023. If you want the value of your investment tobe S by April 30, 2024, express P in terms of S, r, and t.(Note that r and t are not APRs.)2. What is the effective annual rate of the above compounding scheme?
As the treasurer of a manufacturing company, your task is to forecast the direction of interest rates. Your company plans to borrow funds and it may use the forecasting of interest rates to determine whether it should obtain a loan with a fixed or floating interest rate. The following information can be considered when assessing the future direction of interest rates:▪ Economic growth has been high over the last two years, but it is expected that it will be stagnant over the next year.▪ Inflation has been 3 percent over each of the last few years, and it is expected that it will be about the same over the next year.▪ The federal government has announced major cuts in its spending, which should have a major impact on the budget deficit.▪ The Central Bank is not expected to affect the existing supply of loanable funds over the next year.▪ The overall level of savings by households is not expected to change. Question:(a) Given the preceding information, assess how the demand for and the…
To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover. (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000) Could you please help me answer 4-6?
To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover. (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000) 2. For both this year and last year A. Present the balance sheet in common-size format B. Present the income statement in common-size format down through net income Could you please help me answer Question 10, 2A, and 2B?
To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover. (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000) 2. For both this year and last year A. Present the balance sheet in common-size format B. Present the income statement in common-size format down through net income Could I please have somed help with Question 10 with a breakdown of the explanation?
Carson Company is a large manufacturing firm in Accra that was created 20 years ago by the Carson family. It wasinitially financed with an equity investment by the Carson family and 10 other individuals. Over time, Carson Companyhas obtained substantial loans from finance companies and commercial banks. The interest rate on the loans is tied to themarket interest rate and is adjusted every six months. Thus, Carson’s cost of obtaining funds is sensitive to interest ratemovements. It has a credit line with a bank in case it suddenly needs additional funds for a temporary period. It haspurchased Treasury securities that it could sell if it experiences any liquidity problems.Carson Company has assets valued at about 50 million cedis and generates sales of about 100 million cedis per year. Someof its growth is attributed to its acquisitions of other firms. Because of its expectations of a strong Ghanaian economy,Carson Company plans to grow in the future by expanding its business by making…