SHOW EXCEL SOLVER SETUP FOR UPVOTE

Pioneer, Inc., has identified four Machines (M1, M2, M3, and M4) which it would like to buy. Mr. Shaw, the manager at the firm, approaches three local banks for financing. Each bank has placed a credit ceiling on how much it will lend. Moreover, each loan officer has set a different interest rate on each of the four Machines. Relevant information has been summarized in the table below. All the loans will be paid in 1 year. Formulate the problem and solve using Excel Solver. Answer the questions below. Note - penalty for wrong answers. This is a Transportation type problem. You'll be minimized the total interest cost. There are 12 variables ( 3 Banks 4 Machines) and 7 constraints (3 Banks +4 Machines). Keep in mind the interest rates are in percentage. The total amount borrowed from the banks is less than $300,000. It is not good to borrow money from Bank 1 for Machine 3. The total amount of interest paid to Bank 1 is $11,800. Bank 1 is lending $20,000 for Machine 1 The optimal interest amount paid to the banks is $25,900. The total loan from Bank 1 is $130,000. Interest amount paid to Bank 3 for Machine 2 is $0. The interest paid to Bank 3 for Machine 1$5,700. The interest cost of borrowing money from Bank 3 for Machine 4 is $9,000 The minimum cost of borrowing money is $27,200 Bank 1 will give Machine 2 a loan of $60,000 The total interest paid to Bank 1 is $130,000