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grin007 [14]
3 years ago
10

randy deposited $1000 into an account that paid 2.8% with continuous compounding. what was her balance after 6 years

Mathematics
1 answer:
Annette [7]3 years ago
8 0
Her balance is $1180.20 the formula is 100(1+.028)^6
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Answer:

(a) A_1 and A_2 are indeed mutually-exclusive.

(b) \displaystyle P(A_1\; \cap \; B) = \frac{1}{20}, whereas \displaystyle P(A_2\; \cap \; B) = \frac{1}{25}.

(c) \displaystyle P(B) = \frac{9}{100}.

(d) \displaystyle P(A_1 \; |\; B) \approx \frac{5}{9}, whereas P(A_1 \; |\; B) = \displaystyle \frac{4}{9}

Step-by-step explanation:

<h3>(a)</h3>

P(A_1 \; \cap \; A_2) = 0 means that it is impossible for events A_1 and A_2 to happen at the same time. Therefore, event A_1 and A_2 are mutually-exclusive.

<h3>(b)</h3>

By the definition of conditional probability:

\displaystyle P(B \; | \; A_1) = \frac{P(B \; \cap \; A_1)}{P(B)} = \frac{P(A_1 \; \cap \; B)}{P(B)}.

Rearrange to obtain:

\displaystyle P(A_1 \; \cap \; B) = P(B \; |\; A_1) \cdot  P(A_1) = 0.25 \times 0.20 = \frac{1}{20}.

Similarly:

\displaystyle P(A_2 \; \cap \; B) = P(B \; |\; A_2) \cdot  P(A_2) = 0.80 \times 0.05 = \frac{1}{25}.

<h3>(c)</h3>

Note that:

\begin{aligned}P(A_1 \; \cup \; A_2) &= P(A_1) + P(A_2) - P(A_1 \; \cap \; A_2) = 0.20 + 0.80 = 1\end{aligned}.

In other words, A_1 and A_2 are collectively-exhaustive. Since A_1 and A_2 are collectively-exhaustive and mutually-exclusive at the same time:

\displaystyle P(B) = P(B \; \cap \; A_1) + P(B \; \cap \; A_2) = \frac{1}{20} + \frac{1}{25} = \frac{9}{100}.

<h3>(d)</h3>

By Bayes' Theorem:

\begin{aligned} P(A_1 \; |\; B) &= \frac{P(B \; | \; A_1) \cdot P(A_1)}{P(B)} \\ &= \frac{0.25 \times 0.20}{9/100} = \frac{0.05 \times 100}{9} = \frac{5}{9}\end{aligned}.

Similarly:

\begin{aligned} P(A_2 \; |\; B) &= \frac{P(B \; | \; A_2) \cdot P(A_2)}{P(B)} \\ &= \frac{0.05 \times 0.80}{9/100} = \frac{0.04 \times 100}{9} = \frac{4}{9}\end{aligned}.

6 0
2 years ago
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