if you put $2,000 in a savings account that pays 6% intrest compound continuously, how much money will you have in your account
1 answer:
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We will be using the binomial probability formula to solve the problem
The formula is given by ⁿCₓ (p)ˣ (1-p)ⁿ⁻ˣ
Where:
n = the number of trials = 100
x = the number of samples we are trying on = 3
p = the probability of success = 2% = 0.02
We can either calculate ⁿCₓ by using the scientific calculator using the
button or by doing it manually use 
P(3) = ¹⁰⁰C₃ (0.02)³ (1 - 0.02)¹⁰⁰⁻³
P(3) = ¹⁰⁰C₃ (0.02)³ (0.98)⁹⁸
P(3) = 0.182 (rounded to three decimal places)
Correct answer: option 3
The formula is given by ⁿCₓ (p)ˣ (1-p)ⁿ⁻ˣ
Where:
n = the number of trials = 100
x = the number of samples we are trying on = 3
p = the probability of success = 2% = 0.02
We can either calculate ⁿCₓ by using the scientific calculator using the
P(3) = ¹⁰⁰C₃ (0.02)³ (1 - 0.02)¹⁰⁰⁻³
P(3) = ¹⁰⁰C₃ (0.02)³ (0.98)⁹⁸
P(3) = 0.182 (rounded to three decimal places)
Correct answer: option 3