Question: The Solid Trust Savings & Loan Company has set aside $25 million for loans to home buyers. Its policy is to allocate at least $10

The Solid Trust Savings & Loan Company has set aside $25 million for loans to home buyers. Its policy is to allocate at least $10 million annually for luxury condominiums. A government housing development grant that the company receives requires, however, that at least one third of its total loans be allocated to low-income housing. Solid Trusts return on condominiums is 12%, and its return on low-income housing is 10%. How much should the company allocate for each type of housing to maximize its total returns?

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