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Leno4ka
8 days ago
10

Lori buys a $1500 certificate of deposit (CD) that earns 6% interest that compounds monthly. How much will the CD be worth in 10

years?
Mathematics
1 answer:
Inessa [12.5K]8 days ago
4 0

Response:

The CD will have a value of $2,729.09 after a duration of 10 years.Solution:

Initial investment (P) = $1500

Interest rate (r) = 6%

                              $=\frac{6}{100}

                             = 0.06

Time period (t) = 10 years

Compounded on a monthly basis

Number of compounding intervals per time period

n = 12

A = Total amount

Formula for compound interest:

$A=P\left(1+\frac{r}{n}\right)^{n t}

$A=1500\left(1+\frac{0.06}{12}\right)^{12\times 10}

$A=1500\left(\frac{12+0.06}{12}\right)^{120}

$A=1500\left(\frac{12.06}{12}\right)^{120}

A=2729.09

The CD will have a value of $2,729.09 after a span of 10 years.

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Step-by-step explanation:

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Sample size: n=12

Mean: \mu=np=12\times0.15=1.8

Standard deviation = \sigma=\sqrt{np(1-p)}

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Referencing the standard normal distribution table,

P(x=4)=P(x\leq4)-P(x\leq3) (1)

Z score for normal distribution:-

z=\dfrac{x-\mu}{\sigma}

For x=4

z=\dfrac{4-1.8}{1.2369}\approx1.78

For x=3

z=\dfrac{3-1.8}{1.2369}\approx0.97

Thus, from (1)

P(x=4)=P(z\leq1.78)-P(z\leq0.97)\\\\=0.962462-0.8339768\approx0.1289

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3 0
1 month ago
Nathan had an infection, and his doctor wanted him to take penicillin. Because Nathan’s father and paternal grandfather were all
Svet_ta [12734]

Let the events be defined as follows:
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~A=Nathan does not suffer from an allergy
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According to the provided data,
P(A)=0.75 [ probability indicating that Nathan is allergic ]
P(T|A)=0.98 [ probability of obtaining a positive test result if Nathan is allergic to Penicillin]

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P(T n A)

Using the definition of conditional probability,
P(T|A)=P(T n A)/P(A)
By substituting the known values,
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We then solve for P(T n A)
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Hope this assists you!!

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1 month ago
Twenty percent of adults in a particular community have at least a​ bachelor's degree. Suppose x is a binomial random variable
tester [12383]
This scenario relates to binomial probability, where the results can either be a success or a failure. A success indicates that a selected adult possesses a bachelor's degree. Consequently, the success probability, denoted as p, is 20/100 = 0.2. The number of adults in the sample, represented as n, equals 100, and x, the count of successes, is 60. The probability of having more than 60 adults with a bachelor's degree, represented as P(x >60), can be noted internally as P(x < 60) = binomcdf (100, 0.20, 60). The function binompdf would indicate P(x = 60).
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24 days ago
What’s the x value of PR=9x-31 and QR=43?
AnnZ [12381]

Reducing

9x + -31 = 43

Rearranging the components:

-31 + 9x = 43

Finding the solution

-31 + 9x = 43

Isolating the variable 'x'.

Shift all terms with x to one side,

Add '31' to both sides of the equation.

0 + 31 + 9x = 43 + 31

Summing up similar items:

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9x = 43 + 31

Summing similar items:

43 + 31 = 74

9x = 74

Split each side by '9'

x = 8.222222222

Simplifying

x = 8.222222222

6 0
1 month ago
Read 2 more answers
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PIT_PIT [12445]
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176 = (2 · belt) + 31 + (3 · belt)
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23 days ago
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