Answer:
using solver, the optimal solution is:
$325,000 invested in bonds
$162,500.01 invested in mortgages
$162,499.99 invested in personal loans
maximum profit = $66,625
Explanation:
profit maximization equation:
0.1b + 0.085m + 0.095c + 0.125p
where:
b = money invested in bonds
m = money invested in mortgage loans
c = money invested in car loans
p = money invested in personal loans
constraints:
b + m + c + p ≤ 650,000
p ≤ 0.25 x 650,000 ⇒ p ≤ 162,500
m ˃ p
b ˃ p
using solver, the optimal solution is:
$325,000 invested in bonds
$162,500.01 invested in mortgages
$162,499.99 invested in personal loans
maximum profit = $66,625
actually solver gave me the following solution:
$325,000 invested in bonds
$162,500 invested in mortgages
$162,500 invested in personal loans
maximum profit = $66,625
since mortgage loans must be larger than personal loans, I added 1¢ to mortgage loans and subtracted 1¢ from personal loans
