Confused on how to set this up Having a hard time figuring o

Confused on how to set this up.

(Having a hard time figuring out how to set up the tableau.) A bank has set aside a maximum of $25 million for commercial and home loans. Every million dollars in commercial loans requires 2 lengthy application forms, while every million dollars in home loans requires 3 lengthy application forms. The bank cannot process more than 72 application forms at this time. The bank\'s policy is to loan at least four times as much for home loans as for commercial loans. Because of prior commitments, at least $10 million will be used for these two types of loans. The bank earns 8% on commercial loans and 12% on home loans. What amount of money should be allotted for each type of loan to maximize the interest income? Using the simplex method, the bank should allot: million for commercial loans million for home loans maximum interest the bank will earn

Solution

commercial loann is X, home loan is Y. the amount is in millions.

MAx 0.8X+ 0.12Y

X+Y? 25

2X+3Y?72

Y?4X

X+Y?10

X,Y?0

Confused on how to set this up. (Having a hard time figuring out how to set up the tableau.) A bank has set aside a maximum of $25 million for commercial and ho

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