A credit union wants to make investments in the following:
Type of Investment Annuel Rate of Return (%)
Vehicle loans 7%
Consumer loans 9%
Other secured loans 10%
Signature loans 11%
Risk-free securities 8%
The firm would like to invest the entire $1,000,000 available for investment during the coming year. The goal is to maximize the return. The following restrictions apply. Write an appropriate constraint or expression for each of the following statements:
1. Write the objective function.
2. Constraint related to total investment
3. Risk-free securities may not exceed 40% of the total funds.
4. Signature loans may not exceed 10% of the funds invested in all loans (vehicle, consumer, other secured loans, and signature loans).
5. Consumer loans plus other secured loans may not exceed the vehicle loans.
6. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.