Linear Programming (LP) to determine the monthly payment:

Assume the following,

Let “Upm” be the unpaid balance after month “m” payment.

Let “p” be the payment that can be paid on month.

The conditions to this model are as follows,

All variables >= “0”.

“Up1=1000−(p−0.01(1000))” that denotes the unpaid balance after month “1” payment.

For “n=1,2,

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Chapter 3.11, Problem 4P

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