HOW DO I SET THIS PROBLEM UP IN EXCEL:

The method that is implemented to get to the optimal solution is known as Linear Programming.

This is done by study of analysis of the program and forms the result in terms of coefficient optimization.

From the provided information of the County Credit Union (CCU) annual rates of returns on loans for home(H) 7%, personal(P) 12% and automobiles(A) 9% are defined.

The optimal solution to obtain maximum profit by using linear programming can be formulated as,

Let the above equation be (1).

Define constrains for the above linear programming which confirms the degree of accomplishment of function objective.

The constrains for the equation (1) is given as,

Amount given is $1 million. So, overall loans amount is $1million.

Thereby,

Constrain 1 (for new funds):

Constrain 2 (minimum amount of Home loan):

Constrain 3 (requirement of personal loan):