You have to do these problems independently. I have solved the first problem for you. Please use this as a model to show the details of the calculations and the logic in your procedure. The answers to...

You have to do these problems independently. I have solved the first problem for you. Please use this as a model to show the details of the calculations and the logic in your procedure. The answers to the problems are given for your guidance. Note the following:

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.

MODEL TO USE AS AN 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.

PROBLEMS TO SOLVED

1.2.
Virginia Woolf would like to accumulate $3.5 million for her retirement. She has 29 years before she retires. She plans to keep the money in a bank, which will pay interest at the annual rate of 3% and compound it monthly. How much money should she deposit at the beginning of each month to reach her goal? $6305.03

1.3.
Washington Corporation 7.5% bonds will mature on January 15, 2021. They pay interest semiannually, on January 15 and July 15. On July 16, 2009, these bonds are selling at $756 each. If your required rate of return is 11%, should you buy these bonds? $774.69, yes