Problem
Mountain Bank has $1.875 million in funds that it is allocating to various types of loans: small-business loans, re-training loans and personal loans. Based on the annual rates of return and the constraints placed on the various loans, the following LP model has been constructed.
Create a spreadsheet model for the LP model provided and find a Solver solution to determine the optimal amount allocated to the small-business loans (S), the amount allocated to re-training loans (R), and the amount allocated to the personal loans (P). Clearly indicate where your answer can be located.
Max 0.07 S + 0.12 R + 0.09 P
Such that,
S + R + P = 1,875,000
0.6 S -0.4 R - 0.4 P >= 0
R <= 0.6 P
S, R, P >=0
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.