Formulate but Do Not Solve the Following Exercise as a Linear

question 23

Multiple Choice

Formulate but do not solve the following exercise as a linear programming problem. Madison Finance has a total of $15 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 10% annual rate of return, whereas auto loans yield a 11% annual rate of return. Management has also stipulated that the total amount in dollars of homeowner loans should be greater than or equal to nine times the total amount in dollars of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns.

• A) Maximize: Subject to:
• B) Maximize: Subject to:
• C) Maximize: Subject to:
• D) Maximize: Subject to:

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