0v6 Formulate but do not solve the following exercise as a linear programming pr

Question

0v6 Formulate but do not solve the following exercise as a linear programming problem Madison Finance has a total of $16 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 10% annual rate of return, whereas auto loans yield: 3% annual rate of return Management has also stipulated that the total amount of homeowner loans should be greater than 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 subject to the constraints total loans distribution of loans

Explanation / Answer

Here Total loan amount = $ 16 milllion

x = homeowner loan

y= auto loans

as home loans gives 10% return and auto loans gives 13% return

Maximize

P = 0.10x + 0.13 y

Total loans => x + y = 16 millions

distribution of loans :

Constraints :

x,y > = 0

x >= 4y

HEre it is not asked to solve it just formulation is required.

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.