document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1103624>Question 1103624</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Madison Finance has a total of 20 million earmarked for homeowner loans and auto loans. on the average, homeowner loans have a 10% annual rate of return whereas auto loans yield a 12% 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 in order to maximize its return. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #718312 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=718312\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Auto=x<BR>\n" );
document.write( "HO=20000-x<BR>\n" );
document.write( "auto return is .12x<BR>\n" );
document.write( "HO return is (20000-x)(.10)=2000-.10x<BR>\n" );
document.write( "HO return = 4 times Auto<BR>\n" );
document.write( "2000-.10x=.48x<BR>\n" );
document.write( ".58x=2000\r<BR>\n" );
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document.write( "x=$3448.27 which at 12% earns $413.79 ANSWER<BR>\n" );
document.write( "20000-x=$16551.72 which at 10% earns $1655.17 ANSWER, and 1655.16 is 4 times 413.79.<BR>\n" );
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