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:
Null Hypothesis:
Alternative hypothesis: (Changes on the deviation)
Step-by-step explanation:
s represent the sample standard deviation
represent the population standard deviation (variable of interest)
represent the value that we want to test
n represent the sample size
A hypothesis is defined as "a speculation or theory based on insufficient evidence that lends itself to further testing and experimentation. With further testing, a hypothesis can usually be proven true or false".
The null hypothesis is defined as "a hypothesis that says there is no statistical significance between the two variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove".
The alternative hypothesis is "just the inverse, or opposite, of the null hypothesis. It is the hypothesis that researcher is trying to prove".
Based on this the system of hypothesis should be:
Null Hypothesis:
Alternative hypothesis: (Changes on the deviation)
In order to test these system of hypothesis we need to select a significance level , then we need to calculate an statistic given by this formula.
Then we need to calculate the degrees of freedom for the statistic on this case
And after this we need to calculate the pvalue based on the significance, the alternative hypothesis and the statistic calculated.
If the we reject the null hypothesis
If the we FAIL reject the null hypothesis