The first four sections of this note discuss loan plans and bonus funding generally, and some simple examples are shown. Section V and the appendix describe a more powerful method of solution using linear programming techniques, and the final section draws some practical conclusions.

No attempt has been made to describe the basic theories of linear programming. I am indebted for the slight knowledge of the subject I possess to the text-book mentioned in Section V; the object of this note is to demonstrate that linear programming methods can be applied in a somewhat unusual context to solve loan plan and bonus funding problems. Any errors in the technical content of this note are due to my misapplication of the text-book methods rather than to the methods themselves.