SOLUTION: Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $24 million earmarked for homeowner loans and auto loans, wher

Algebra ->  Inequalities -> SOLUTION: Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $24 million earmarked for homeowner loans and auto loans, wher      Log On


   

Question 1020138: Formulate but do not solve the following exercise as a linear programming problem.
Madison Finance has a total of $24 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 9% 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 to maximize its returns P in millions of dollars.



Maximize P = subject to the constraints
total loans =

distribution of loans =

x ≥ 0
y ≥ 0

Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Maximize:



Subject to:









John

My calculator said it, I believe it, that settles it