Answer:
Can you see my answer?
Step-by-step explanation:
Everytime i try answering it won't work. I just wanted to know if u can see this
Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
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Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Answer: C & D
<u>Step-by-step explanation:</u>
A binomial experiment must satisfy ALL four of the following:
- A fixed number of trials
- Each trial is independent of the others
- There are only two outcomes (Success & Fail)
- The probability of each outcome remains constant from trial to trial.
A) When the spinner is spun three times, X is the sum of the numbers the spinner lands on.
→ #3 is not satisfied <em>(#4 is also not satisfied)</em>
B) When the spinner is spun multiple times ...
→ #1 is not satisfied
C) When the spinner is spun four times, X is the number of times the spinner does not land on an odd number.
→ Satisfies ALL FOUR
- A fixed number of trials = 4
- Each trial is independent of the others = each spin is separate
- There are only two outcomes = Not Odd & Odd
- The probability of each outcome remains constant from trial to trial = P(X = not odd) = 0.50 for each spin
D) When the spinner is spun five times, X is the number of times the spinner lands on 1.
→ Satisfies ALL FOUR
- A fixed number of trials = 5
- Each trial is independent of the others = each spin is separate
- There are only two outcomes = 1 & Not 1
- The probability of each outcome remains constant from trial to trial = P(X = 1) = 0.17 for each spin
U would factor by grouping and get x^2(x-2) + 3(x-2) and then get (x^2 +3) (x-2)
