1. Create the spreadsheet models shown in Figures 6.3 and 6.4 in the book. a. For the original model in Figure 6.3, what interest rate is required to decrease the monthly payments by 20%? What change in the loan amount would have the same effect? b. In the spreadsheet shown in Figure 6.4, what is the effect of a prepayment of $200 per month? What prepayment would be necessary to pay off the loan in 25 years instead of 30 years? 2. Solve the MBI product-mix problem described in this chapter, using Excels Solver Examine the solution (output) reports for the answers and sensitivity report. Did you get the same results as reported in this chapter? Try the sensitivity analysis outlined in the chapter; that is, lower the right-hand side of the CC-8 marketing constraint by one unit, from 200 to 199. What happens to the solution when you solve this modified problem? Eliminate the CC-8 lower-bound constraint entirely (this can be done easily by either deleting it in Solver or setting the lower limit to zero) and re-solve the problem. What happens? Using the original formulation, try modifying the objective function coefficients and see what happens.

1. Create the spreadsheet models shown in Figures 6.3 and 6.4 in the book.

a. For the original model in Figure 6.3, what interest rate is required to decrease the monthly payments by 20%? What change in the loan amount would have the same effect?

b. In the spreadsheet shown in Figure 6.4, what is the effect of a prepayment of $200 per month? What prepayment would be necessary to pay off the loan in 25 years instead of 30 years?

2. Solve the MBI product-mix problem described in this chapter, using Excels Solver

Examine the solution (output) reports for the answers and sensitivity report. Did you get the same results as reported in this chapter?

Try the sensitivity analysis outlined in the chapter; that is, lower the right-hand side of the CC-8 marketing constraint by one unit, from 200 to 199. What happens to the solution when you solve this modified problem?

Eliminate the CC-8 lower-bound constraint entirely (this can be done easily by either deleting it in Solver or setting the lower limit to zero) and re-solve the problem. What happens? Using the original formulation, try modifying the objective function coefficients and see what happens.