You deposit $200 every quarter for 12 years into a sinking fund that pays 2.25% interest compounded annually. What is the future
1 answer:
Answer:
$16,974.57
Step-by-step explanation:
The formula for future value is given by
where
FV = future value
PMT = amount deposited each period and is given as 200
i = rate per period = r/m where r is the interest rate and m the frequency of compounding. Here it is mentioned that r = 2.25% and interest is compounded annually ie once per year so m = 1
i = 2.25%/1 = 2.25% = 2.25/100 = 0.0225
The number of payments n = 48 since we make quarterly payments (4 per year) and we are asked to compute for 12 years
Plugging these values into the formula gives
which evaluates to
$16,974.57 which can be rounded up to $16975
depending on the accuracy you desire
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Answer:
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Step-by-step explanation:
Information provided
represent the mean for Miami
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represent the population standard deviation for Miami
represent the population standard deviation for Baltimore
sample size selected for Miami
sample size selected for Baltimore
represent the significance level
z would represent the statistic (variable of interest)
represent the p value for the test
Hypothesis to analyze
We want to check if the commiting times are different in the winter for the two cities, so then the system of hypothesis are:
Null hypothesis:
Alternative hypothesis:
Since we know the population deviations the statistic for this case is given by:
(1)
Replacing the info provided we got:
Now we can calculate the p value since we are conducting a bilateral test the p value would be:
Since the p value is very low we have enough evidence to reject the null hypothesis that the true means are equal at 5% of significance.