Paige invested 1200 at an interest rate of 5.75% compounded quarterly. Determine the value of her investments in 7 years.

1 answer:

4 0

Use the formula A=p(1+r)^n
where
A= value of investment
r= rate
n= time period
p= amount invested
in this question
r= 5.75% but compounded quarterly means divide this by 4
r= 23/1600
n=7*4
n=28
p= $1200
A=1200(1+23/1600)^28

A= $1789.54

Therefore the value of her investment in 7 years is $1789.54

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The speed with which utility companies can resolve problems is very important. GTC, the Georgetown Telephone Company, reports it

brilliants [131]

Answer:

(a) 11.25 and 1.68

(b) 0.1651

(c) 0.3903

(d) 0.6865

Step-by-step explanation:

We are given that GTC, the Georgetown Telephone Company, reports it can resolve customer problems the same day they are reported in 75% of the cases and suppose the 15 cases reported today are representative of all complaints.

This situation can be represented through Binomial distribution as;

$P(X=r)= \binom{n}{r}p^{r}(1-p)^{n-r} ; x = 0,1,2,3,....$

where, n = number of trials (samples) taken = 15

r = number of success

p = probability of success which in our question is % of cases in

which customer problems are resolved on the same day, i.e.;75%

So, here X ~ $Binom(n=15,p=0.75)$

(a) Expected number of problems to be resolved today = E(X)

E(X) = $\mu$ = n * p = 15 * 0.75 = 11.25

Standard deviation = $\sigma$ = $\sqrt{n*p*(1-p)}$ = $\sqrt{15*0.75*(1-0.75)}$ = 1.68

(b) Probability that 10 of the problems can be resolved today = P(X = 10)

P(X = 10) = $\binom{15}{10}0.75^{10}(1-0.75)^{15-10}$

= $3003*0.75^{10} *0.25^{5}$ = 0.1651

= $\binom{15}{10}0.75^{10}(1-0.75)^{15-10}+\binom{15}{11}0.75^{11}(1-0.75)^{15-11}$

= $3003*0.75^{10} *0.25^{5} + 1365*0.75^{11} *0.25^{4}$ = 0.3903

(d) Probability that more than 10 of the problems can be resolved today is

given by = P(X > 10)

P(X > 10) = P(X = 11) + P(X = 12) + P(X = 13) + P(X = 14) + P(X = 15)

= $\binom{15}{11}0.75^{11}(1-0.75)^{15-11}+\binom{15}{12}0.75^{12}(1-0.75)^{15-12} + \binom{15}{13}0.75^{13}(1-0.75)^{15-13}+\binom{15}{14}0.75^{14}(1-0.75)^{15-14} + \binom{15}{15}0.75^{15}(1-0.75)^{15-15}$