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Madison Finance has a total of 20 million euros earmarked for homeowner and auto loans
Madison Finance has a total of 20 million euros earmarked for homeowner and auto loans. 0n the average, homeowner loans have a 10% annual rate of return, whereas auto loans yield a 12% annual rate of return. Management has also stipulated that the total amount of homeowner loans should be greater than or equal to 4 times the total amount of automobile loans. Determine the total amount of loans of each type Madison should extend to each category in order to maximize its returns. What are the optimal returns?
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