2. What is the effective annual rate of an investment that pays 6% for 5 years, compounded semiannually?
1 answer:
Answer:
effective annual rate is 6.16 %
Step-by-step explanation:
given data
rate = 6 % = 0.06
time 5 year = 10 semi annually
to find out
effective annual rate
solution
we know formula for annual effective rate of interest is
rate of interest = -1
put here all value
rate of interest = -1
rate of interest = -1
rate of interest = 0.061646
so effective annual rate is 6.16 %
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Answer: b. Only statement (ii) is correct.
Step-by-step explanation:
The given five-number summary of the ages of passengers on a cruise ship is listed below.
Min 1 20 Median 29
38 Max 80
Inter-quartile range =
- According to the 1.5(IQR) criterion for outliers : An data value is an outlier if it lies below
or above
.
Here ,
Since the minimum value> ( ∵ 1 > -7)
It means there is no value below , so there is no low -outlier.
⇒ Statement (i) "here is at least one passenger whose age is a low outlier. " is false.
But the maximum value > (∵ 85 > 65)
It means there are values above .
⇒Statement (ii) "There is at least one passenger whose age is a high outlier" is true.
Hence, the correct answer is b. Only statement (ii) is correct.