The employee credit union at State University is planning theallocation of funds for the coming year. The credit union makesfour types of loans to its members. In addition, the credit unioninvests in risk-free securities to stabilize income. The variousrevenue-producing investments together with annual rates of returnare as follows: Type of Loan/Investment Annual Rate of Return (%)Automobile loans 8 Furniture loans 10 Other secured loans 11Signature loans 12 Risk-free securities 9 The credit union willhave $1.8 million available for investment during the coming year.State laws and credit union policies impose the followingrestrictions on the composition of the loans and investments: •Risk-free securities may not exceed 25% of the total fundsavailable for investment. • Signature loans may not exceed 12% ofthe funds invested in all loans (automobile, furniture, othersecured, and signature loans). • Furniture loans plus other securedloans may not exceed the automobile loans. • Other secured loansplus signature loans may not exceed the funds invested in risk-freesecurities. How should the $1.8 million be allocated to each of theloan/investment alternatives to maximize total annual return? Typeof Loan/Investment Fund Allocation Automobile loans $ Furnitureloans $ Other secured loans $ Signature loans $ Risk-freesecurities $ What is the projected total annual return? AnnualReturn =