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Kay [80]
3 years ago
9

The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What

is the future value in two months? A. $426 B. $422.10 C. $432.60 D. $424.11
Incorrect Answer-C. $432.60
correct answer-B. $422.10

$420 + 3% = 12.60$12.60/ 12 months (annual interest) = $1.05$1.05 x 2 = $2.10$420 + $2.10 = $422.10
Mathematics
1 answer:
iragen [17]3 years ago
8 0
Present value: P=$420
Annual interest: i=3%=3/100→i=0.03
Compounded monthly→Number of periods per year: n=12
Future Value: F=?
In two months: t=2

F=P(1+i/n)^t
F=$420(1+0.03/12)^2
F=$420(1+0.0025)^2
F=$420(1.0025)^2
F=$420(1.005006250)
F=$422.1026250
Rounded to two decimal places:
F=$422.10

Answer: Option B. $422.10
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3. Anna has a large bag of coins. After counting the coins, she recorded the counts in the table below. She then decided to draw
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Answer:

(a) P = 0.2821

(b) P = 0.3718

(c) P = 0.7179

(d) P = 0.6538

(e) P = 0.4231

Explanation:

There is a total of 78 coins in the bag because:

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From those 78 coins, 22 are quarters, so the probability that Anna obtains a quarter on the first draw is:

P = 22/78 = 0.2821

Since Anna replaces each coin before the next draw, the probability for each draw is independent. Therefore, the probability that Anna obtains a penny or a dime on the second draw is calculated as:

P = (18 + 11)/78 = 0.3718

Because there are 18 pennies and 11 dimes in the bag.

In the same way, Anna will obtain at most 10 cents worth of money if she obtains a penny, a dime, or a nickel. So, the probability is equal to:

P = (27 + 11 + 18)/78 = 0.7179

The probability that Anna does not get a nickel on the fourth draw is:

P = (22 + 11 + 18)/78 = 0.6538

Finally, Anna obtains at least 10 cents if he obtains a dime or a quarter, so the probability is:

P = (22 + 11)/78 = 0.4231

Therefore, the answers are:

(a) P = 0.2821

(b) P = 0.3718

(c) P = 0.7179

(d) P = 0.6538

(e) P = 0.4231

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