Question
In: Statistics and Probability
A local SME bank provides 4 types of loans of its customers and these loans yield...
A local SME bank provides 4 types of loans of its customers and these loans yield the following interest rates to the Bank:
- Personal Loan 1: 14%
- Personal Loan 2: 20%
- Home Loan: 20%
- Overdraft: 10%
The Bank has a maximum foreseeable lending capability of Rs 700 million and is further constrained by the policies:
- Personal Loan 1 must be at least 45% of all personal loans issued and at least 15% of all loans issued (in Rs terms);
- Personal Loan 2 cannot exceed 40% of all loans issued (in Rs Terms);
- 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 maximise interest income whilst satisfying the policy limitations.
Solutions
orchestra answered 2 years agoRelated Solutions
Bank provides 5 different loans. The types of these loans and monthly interest rates are given...
Bank provides 5 different loans. The types of these loans and
monthly interest rates are given below.
Type Of Credit Percentage Of Interest(month)
A
(commercial)
5.5
B)(home)
3.5
C
(auto)
5
D (House
2)
4.5
E (short
term))
6
The bank can give credit £ 100 million. The goal is to maximize
interest income
But have some obligations about the loans:
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Entity A is a local construction company, which provides construction services to different types of customers....
Entity A is a local construction company, which provides
construction services to different types of customers. On 16
December 2017, Entity A ordered a concrete plant from Entity B. The
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However, Entity B offers a 10% trade discount to Entity A because
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A on 1 January 2018. According to the contract, Entity B provides a
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