Consider an investment of $6000 that earns 4.5% interest
1 answer:
Answer:
$11,611.69
Step-by-step explanation:
<u>Compound Interest Formula</u>
where:
- A = final amount
- P = principal amount
- r = interest rate (in decimal form)
- n = number of times interest applied per time period
- t = number of time periods elapsed
Given:
- P = $6,000
- r = 4.5% = 0.045
- n = 1 (annually)
- t = 15 years
Substitute the given values into the formula and solve for A:
Therefore, the value of the investment after 15 years will be $11,611.69 to the nearest cent.
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Thus, let's use this knowledge to answer the question.
We need the minimum amount of questions such that the probability is less than 1/10.
We can write an inequality for this:
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Let's take a scenario to better understand.
Suppose the true-false paper has 5 questions. For a perfect score by guessing, you'd need to get all 5 correct (ie (1/2)⁵)
The reason why you multiply is because you need each 1/2 simultaneously for a perfect score, which is an important concept when doing binomial probability later on.
Thus, let's use this knowledge to answer the question.
We need the minimum amount of questions such that the probability is less than 1/10.
We can write an inequality for this:
Now, we need to log both sides to find n.
n > 3.3219...
n ≈ 4
Thus, 4 questions is the minimum number of questions needed.