A small bank is allocating maximum of Rs.21,00,000/- for personal and car loans. The interest rates per

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A small bank is allocating maximum of Rs.21,00,000/- for personal and car loans. The interest rates per annum are 11% for car loans and 13% for personal loans. The loans are repaid at the end of a one-year period. The amount of personal loans can not exceed 40% of the car loans. Past experience has shown that bad debts amount to 1.2% of all personal loans. Solve the above problem to find the optimum loan allocations and bank's profit.

Posted Date: Dec 21, 2021 09:16 AM

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A small bank is allocating maximum of Rs.21,00,000/- for personal and car loans. The interest rates per

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Answer Given total Amount 210000 Person al loan Interast P 13 C111 Car loan Interest 3D ... View the full answer

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