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:

  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 Rs 700 million and is further constrained by the policies:

  1. Personal Loan 1 must be at least 45% of all personal loans issued and at least 15% of all loans issued (in Rs terms);
  2. Personal Loan 2 cannot exceed 40% of all loans issued (in Rs Terms);
  3. 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

Expert Solution

orchestra answered 11 months ago
Next > < Previous

Related Solutions

Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans...
Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president...
QUESTION 4: Juicyfruit Limited is an agro-processing SME producing various types of juices using local fruits....
QUESTION 4: Juicyfruit Limited is an agro-processing SME producing various types of juices using local fruits. It has contracted you to develop a business proposal for them to seek financing from the Ghana Venture Capital Trust Fund. Develop a very brief business proposal.
A local bank claims that the waiting time for its customers to be served is the...
A local bank claims that the waiting time for its customers to be served is the lowest in the area. A competitor bank checks the waiting times at both banks. The sample statistics are listed below. Test the local bank's claim. Use the information given below. Use the significant level of .05 and assume the variances are equal. sample size Local Bank n1 = 46 Competitor Bank n2 = 50 Average waiting time in minutes for each sample Xbar1 =...
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 listed price of the plant is $650,000 for general customers. However, Entity B offers a 10% trade discount to Entity A because it is one of its loyal customers. The plant was delivered to Entity A on 1 January 2018. According to the contract, Entity B provides a 2-month credit...
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 listed price of the plant is $650,000 for general customers. However, Entity B offers a 10% trade discount to Entity A because it is one of its loyal customers. The plant was delivered to Entity A on 1 January 2018. According to the contract, Entity B provides a 2-month credit...
A local bank needs information concerning the account balance of its customers. A random sample of...
A local bank needs information concerning the account balance of its customers. A random sample of 15 accounts was checked. The mean balance was $686.75 with a standard deviation of $256.20. A. Construct a 98% confidence interval for the population mean, assuming account balances are normally distributed. B. Based on your previous answer, would a population mean of $500 be unusual? What about a mean of $800?
Why is accountability important when the World Bank provides loans to countries?
Why is accountability important when the World Bank provides loans to countries?
XBank4u, a local bank, prides itself on providing the latest services available to its customers. Continually...
XBank4u, a local bank, prides itself on providing the latest services available to its customers. Continually launching new applications on a quarterly basis, it wanted to provide something new and easy to use for its customers with a cutting-edge application. The bank hired Kimberly, a Web application developer, to provide the applications. XBank4U recently introduced a new service, “Mortgage Application Service,” and assigned Kimberly to create the application to support it. While writing the application, she finds ShrinkWrap, an ASP-based...
In a survey of its customers, a local tire shop found that 52% of its customers...
In a survey of its customers, a local tire shop found that 52% of its customers are satisfied with its services and 47% are not. The sample size was 250. A.) What percentage of customers do you believe are satisfied with this service? USe 95% confidence interval. B.) Use 99% confidence interval and interpret your results. What would you suggestion be to the manager?   
A bank provides financial services for customers. A customer approaches a bank branch and can open...
A bank provides financial services for customers. A customer approaches a bank branch and can open bank account(s). Before opening an account, the customer must fill a form for creating a customer record and then submit the form to a staff member. The system will create a new customer personal record based on the captured customer’s details from an online form. Consider the above processing requirements description of the Bank Management System application Your tasks are:            1.Draw the Entity...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT