# The answers to the problems are given for your

### Question Description:

The answers to the problems are given for your guidance. Instructions 1. Please include the statement of the problem with the solution. 2. Write a financial principle to start your problem. For example, The PV of a loan is equal to the PV of installments, properly discounted. 3. Write an equation to represent the financial principle. You should include the equation number, such as (2.1), that you are using to set up the problem. 4. You can solve the equation by using a WolframAlpha statement. Write that statement within your solution so that I can verify your answer. 5. If you are using Excel, make sure the Excel table is embedded in the Word file. 6. Use explanations to show your logic. Use the Walmart Example as a model of how to write the details of the calculations and logic in your procedure. Example 1.1. At Wal-Mart, in the hardware department, a customer buys five gallons of paint and six brushes and pays $97.52 for them, including 6% sales tax. Another person buys eight gallons of paint and five brushes and pays $146.28, including the sales tax. Find the price of a gallon of paint and that of a brush. Suppose the paint sells for $x per gallon and the brushes are $y each. The total for the first customer is 5x + 6y. Adding 6% sales tax, then it becomes 1.06(5x + 6y). The total is $97.52. Thus we get the equation 1.06(5x + 6y) = 97.52 Likewise, the equation for the second customer is 1.06(8x + 5y) = 146.28 To solve the equations, go to WolframAlpha and write the following instruction 1.06*(5*x+6*y)=97.52,1.06*(8*x+5*y)=146.28 The result comes out as x = 16 and y = 2. Thus, paint is $16 per gallon and brushes are $2 each. ♥ Problem 1 – The answers to this problem are listed below. Follow the instructions above. 1. Wyoming Corporation has invested in the following two projects. The following table provides the cash flows from the two projects under different states of the economy. State of the Economy Probability Project A Project B Poor 25% $3000 −$5000 Average 30% $4000 $7000 Good 45% $5000 $15,000 Find the following: (A) Standard deviation of A,σ(A) $812.40 (B) Standard deviation of B, σ(B) $8027.45 (C) Correlation coefficient between the two projects, rAB .9936