Palmetto national savings and loan makes five kinds of loans

FINANCE (BANKING)

Palmetto National Savings and Loan makes five kinds of loans. These loans, with the yearly interest rate charged to customers, are shown in the table below:

Type of Loan Interest charges (percent)
Commercial loans 15
Home mortgage (first mortgage) 10
Home improvements 13.6
Home mortgage (second mortgage) 14
Short-term revolving loan 18 

The bank has $53 million in available funds. Its objective is to maximize yield on investment.

The Demand for Funds

The demand for short-term revolving loans never exceeds $5
million. All other demands are unlimited.

Policies and Regulations

a. Home improvement loans cannot be higher than 20 percent of first mortgage loans.
b. Commercial loans must be smaller than or equal to the second mortgage loans.
c. The bank must invest at least 60 percent of the loans outstanding (total loans) in mortgages.
d. For safety reasons, there must be at least $2 invested in first mortgage loans for every dollar invested in second mortgage loans.
e. Short-term loans cannot exceed $5 million.

Find the best bank fund allocation plan.

AUDITING

Arthur and Son, P.A., is an auditing firm that conducts both financial and operational audits. Arthur can conduct 90 financial audits (FAs) per year if he spends full time on just FAs, or 180
operational audits (OAs) per year full time, or any linear combination of both. Son processes the reports made by Arthur. Son can prepare 180 financial audit reports or 150 operational audit reports per year, or any linear combination thereof. The office staff finalizes the reports  submitted by Son. They can handle no more than 160 reports of any kind, per year. Arthur and Son have calculated that to keep their association solvent, they must produce at least 30 FAs and 50 OAs each year. The profit from each FA has averaged $720 in the past and for each OA has been about $650. How many FAs and OAs should Arthur and Son attempt to conduct each year to maximize their firm’s profits?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more