A Local SME Bank provides 4 types of loans to its customers and these loans yield...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A Local SME Bank provides 4 types of loans to its customers and these loans yield the following annual interest rates to the Bank: 1. Personal Loan 1: 14% 2. Personal Loan 2: 20% 3. Home Loan: 20% 4. Overdraft: 10% The Bank has a maximum foreseeable lending capability of Rs700 million and is further constrained by the policies: a) Personal Loan 1 must be at least 45% of all loans issued and at least 15% of all loans issued (in Rs terms); b) Personal Loan 2 cannot exceed 40% of all loans issued (in Rs terms); c) To avoid public displeasure and the introduction of a new tax, the average interest rate on all loans must not exceed 10%. Formulate the Linear Programming Problem. Note: To maximize interest income whilst satisfying the policy limitations. A Local SME Bank provides 4 types of loans to its customers and these loans yield the following annual interest rates to the Bank: 1. Personal Loan 1: 14% 2. Personal Loan 2: 20% 3. Home Loan: 20% 4. Overdraft: 10% The Bank has a maximum foreseeable lending capability of Rs700 million and is further constrained by the policies: a) Personal Loan 1 must be at least 45% of all loans issued and at least 15% of all loans issued (in Rs terms); b) Personal Loan 2 cannot exceed 40% of all loans issued (in Rs terms); c) To avoid public displeasure and the introduction of a new tax, the average interest rate on all loans must not exceed 10%. Formulate the Linear Programming Problem. Note: To maximize interest income whilst satisfying the policy limitations.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Ethernet frames must be at least 64 bytes long to ensure that the transmitter is still going in the event of a collision at the far end of the cable. Fast Ethernet has the same 64-byte minimum frame...
-
Computadoras y Ms offers discounts to its customers and allows the customer to return the product if they are not satisfied. Computadoras y Ms had sales of $ 850,000 and offers the customer a payment...
-
Formulate a linear programming problem that can be used to solve the following question. A firm has plants in Boston and Baltimore that manufacture three models of hot tubs: regular, fancy, and...
-
Which of the following divisions of plants does NOT have a well differentiated body? A) Gymnosperms B) Bryophyta C) Thallophyta D) Pteridophyta
-
Finn Kilgallon recently won the jackpot in the Wisconsin lottery while he was visiting his parents. When he arrived at the lottery office to collect his winnings, he was offered the following three...
-
Information for Schopp Corporation is given in E8-5. In E8-5 Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for...
-
\(\left(\frac{2}{5} \times\left(\frac{7}{8}-\frac{2}{3} ight) ight)^{2} \div\left(\frac{4}{9}+\frac{5}{6} ight)+\frac{7}{12}\) Perform the indicated operations. Reduce to lowest terms.
-
You hold an auction on eBay and expect two bidders to show up. You estimate that each bidder has a value of either $5 or $8 for the item, and you attach probabilities to each value of 50%. Your own...
-
The weekly wage of semi-skilled workers in an industry is assumed to have population mean of R286.50 and a standard deviation R29.47. If a company in this industry pays a sample of 40 of its workers...
-
Should Grand Central Publishing continue to bid for Dewey, wait for the scheduled auction with several interested publishers, or pull out of the race? Why? 2. What is the role of authors, agents, and...
-
. Assessment tasks: {all Collect the latest annual reports of Two [2] A5)! listed companies for the last 3 years. Based on your collected a nnual reports. do the following tasks: [ii {ii} [iii]...
-
Discuss the role of autonomous maintenance within the TPM framework. How does this approach empower operators and improve overall equipment effectiveness (OEE), and what training and cultural changes...
-
Explain the use of predictive maintenance techniques within TPM. How do advanced technologies like machine learning, artificial intelligence, and condition-based monitoring improve equipment lifespan...
-
Tampermure Company has three product segments: Prefabrications, Castings, and Forging. Forging seems to be unprofitable and management is considering dropping the segment entirely. Fixed Costs have...
-
1400 1200 1000 800 600 400 200 0 Impact of Post retairment age (55-90) on employement status 100% 1176 1141 1121 1102 1059 90% 80% 70% 801 60% 50% 40% 30% 20% 10% 0% Full-time employment Part-time...
-
Students are to consider some examples of unique or compelling marketing ideas that you have seen or heard of in different media. This could relate to a product or service you have recently come...
-
Should business transactions credits and debits be recorded directly into the ledger accounts? What are the advantages of recording in the journal before posting transactions into the ledger?
-
Is times interest earned meaningful for utilities? Why or why not?
-
Brian and Kim have a 12-year-old child, Stan. For 2012, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-7. Ivan sold the following securities during the year and received a Form 1099-B that...
-
Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of these items must be used to...
-
Lessee Company enters into a 6-year finance lease of non-specialized equipment with Lessor Company on January 1,2020 . Lessee has agreed to pay \(\$ 28,000\) annually beginning immediately on January...
-
Frontier Inc. enters into an 8 -year lease contract to lease equipment with a useful life of 8 years. Annual lease payments are due with the first payment made immediately on January 1, 2020, the...
-
Referring to the information in Brief Exercise 17-28, assume the same information except that the lessee guaranteed the residual value for \(\$ 5,000\) at the end of the lease term. Compute the value...
Study smarter with the SolutionInn App