A Local SME Bank provides 4 types of loans to its customers and these loans yield...
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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.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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