Question

A bank is attempting to determine where its assets should be invested during the current year....

A bank is attempting to determine where its assets should be invested during the current year. At present, $400,000 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%; personal loans, 20%. To ensure that the bank's portfolio is not too risky, the bank's investment manager has placed the following two 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 exceed the amount invested in auto loans.

Math   Statistics-And-Probability   
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Homework Answers

Answer #1

Using Excel

data -> solver

bond = 200000
home loan = 0
auto loan = 0
personal loan = 20000

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