Question: M3_A3. A bank is attempting to determine where its assets should be invested during the current vear. At present, $500,000 is avaiiable for investment in

 M3_A3. A bank is attempting to determine where its assets should

M3_A3. A bank is attempting to determine where its assets should be invested during the current vear. At present, $500,000 is avaiiable for investment in bonds, home loans, auto loans, and personal loans. The annual rate of returns are shown in the table below. INVESIMENT ANNUAL RATE DF El'UHN Bonds 10% Home Loans . 15% Auto Loans 13% Personal Loans _ 20% To ensure that the bank's portfolio is not too riskv, the bank's investment manager has placed the toilovving three restrictions on the banks portfoiio: .. The amount invested in personal loans cannot exceed the annual amount invested in bonds. .. The amount invested in home loans cannot exceed the amount invested in auto loans .. No more than 25% of the totai amount invested can be in personal loans. Formulate and solve this probiem in Excel to determine how the bank. should invest in assets to meet the requirements and maximize the annual return of its investment portfolio. a] How manv decision variables does this problem have? b} Not counting the non-negativityr constraint - hovv manv constraints does this problem have? c] What is the total return for the investments based on 1.rour optimal solution {the value of the objective function]? d} How much should be invested in Bonds based on vour optimal solution? e} How much should be invested in Home Loans based on your optimal solution? f} How much should be invested in Auto Loans based on vour optimal solution? g} How much should be invested in Personai Loans based on vour optimal solution

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