Question: ( b ) How much should be allocated to each type of loan? What is the total annual return? If required, round your answer to
b How much should be allocated to each type of loan?
What is the total annual return?
If required, round your answer to nearest whole dollar amount.
$
What is the annual percentage return?
If required, round your answer to two decimal places.
c If the interest rate on home loans increases to would the amount allocated to each type of loan change?
Explain.
An increase to
within the allowable range, so the amount allocated to each type of loan
d Suppose the total amount of new funds available is increased by $ What effect would this have on the total annual return? Explain.
If required, round your answer to nearest whole dollar amount.
An increase of $ to the total amount of funds available would increase the total annual return by $
e Assume that ASB has the original $ million in new funds available and that the planning committee has agreed to relax the requirement that at least of the new funds must be allocated to home loans by How much would the annual return change?
If required, round your answer to nearest whole dollar amount.
varsigma
How much would the annual percentage return change?
If required, round your answer to two decimal places.
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