Solutions, Math 368-1 082

Last modified Jul 12, 2008 3:33 PM

In Problem 3, note that the letter V refers to the total market value of the stock purchased, not just the price per share; you are asked to calculate the price per share below which there will be a maintenance call.

In Problem 4, the essential thing to explain is what happens when there is a maintenance call, which in this example occurs at the $20 share price.

Solutions, Problems 3 and 4 (embedded jpeg document).
Problem 5 , which asks you to explain induction, was twice assigned as a homework problem. Note that in the “inductive stop” in an induction proof, you are not proving that
if Π(n) is true FOR ALL n ≥ 5,
then Π(n+1) is true FOR ALL n ≥ 5.
There is nothing to prove in the preceding statement! It is always true, every day, in every way, no matter what Π(n) is. (No matter what statement Π(n) you are talking about, if Π(n) is true for ALL n ≥ 5, then Π(n+1) is true for all n ≥ 5.)

In Problem 6, the instructions say, “DonÕt do any but simple calculations.” While this will not play a role in my grading, there is obviously a difference of opinion regarding what constitutes a “simple calculation”. You could have saved yourself a lot of writing if you do “simple calculations” such as
- 0.06/12 (= 0.060/12 = 0.005, because 60/12 = 5),
- 10000*0.005,
- 300-50, and
- 10000-250.
Solutions, Problems 5 and 6 (embedded jpeg document).

Last modified Jul 12, 2008 3:33 PM