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Adirondack Savings Bank (ASB) has $3 million 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 to maximize the total annual return for the new funds. (Assume H is the amount allocated on home loans, A is the amount allocated on Auto loans, and P is the amount allocated on personal loans. Write your answers expressing the amount allocated in dollars.) Max .09A +.07H +.12P s.t. Available investment funds A+H+P=3000000 Minimum home loan amount H>.4(A+H+P) Maximum personal loan amount P<.6a h p a20 how much dollars should be allocated to each type of loan home loans x personal auto what is the total annual return percentage your answer two decimal places. if interest rate on increases would amount change explain. since within allowable range obtained in part will not change. suppose new funds available increased by effect this have nearest dollar. increasing increase x. maximum assume that asb has original million and planning committee agreed relax requirement at least must adirondack savings bank automobile loans. rates for three types are decided addition specified cannot exceed formulate a linear programming model can used determine allocate maximize funds. write answers expressing dollars. max .09a s.t. investment minimum>.4(A+H+P) Maximum personal loan amount P<.6a h p a20 how much dollars should be allocated to each type of loan home loans x personal auto what is the total annual return percentage your answer two decimal places. if interest rate on increases would amount change explain. since within allowable range obtained in part will not change. suppose new funds available increased by effect this have nearest dollar. increasing increase x. maximum assume that asb has original million and planning committee agreed relax requirement at least must>

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