Question: Goal Formulate the real-life problem as Linear Programming model, and solve it using a suitable computer software. Problem Statement Bank Loan Model Bank One is

Goal Formulate the real-life problem as Linear Programming model, and solve

Goal Formulate the real-life problem as Linear Programming model, and solve it using a suitable computer software. Problem Statement Bank Loan Model Bank One is in the process of devising a loan policy that involves a maximum of $12 million. The following table provides the pertinent data about available loans. Interest rate Bad-debt ratio .10 Type of loan Personal Car Home Farm Commercial .140 .130 .120 .125 .100 .07 .03 .05 .02 Bad debts are unrecoverable and produce no interest revenue. Competition with other financial institutions dictates the allocation of at least 40% of the funds to farm and commercial loans. To assist the housing industry in the region, home loans must equal at least 50% of the personal car, and home loans. The bank limits the overall ratio of bad debts on all loans to at most 4%

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