Supposing, for the sake of illustration, that the mean is 31.2 and the std. dev. is 1.9.
This probability can be calculated by finding z-scores and their corresponding areas under the std. normal curve. 34 in - 31.2 in The area under this curve to the left of z = -------------------- = 1.47 (for 34 in) 1.9 32 in - 31.2 in and that to the left of 32 in is z = ---------------------- = 0.421 1.9
Know how to use a table of z-scores to find these two areas? If not, let me know and I'll go over that with you.
My TI-83 calculator provided the following result:
normalcdf(32, 34, 31.2, 1.9) = 0.267 (answer to this sample problem)
Use the formula of the present value of annuity ordinary through GoogleWhat you have here is a loan payment of $108.08 with a present value of $3015 (the $3350 minus the 10% down payment) and a future value of zero with monthly compounding over 36 months I got R=0.173906 R=17.3% good luck
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