Loan example (1)

Loan example (1) - Solution Variables : x 1 = loan from...

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Loan example A company accountant has 2 sources of credit with different interests: Bank loan Government funding Interest 20% 8% Max available $80,000 $90,000 Government regulation says: government funding can not exceed twice the bank loan. A company needs to borrow at least $100,000. Formulate as a linear programming.
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Unformatted text preview: Solution Variables : x 1 = loan from bank in $ x 2 = loan from government in $ objective: min z = 0.2 x 1 + 0.08 x 2 such that: x 1 80,000 (constraints) x 2 90,000 2 x 1- x 2 0 x 2 2 x 1 x 1 + x 2 100,000 x 1 , x 2 (nonnegativity)...
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