jenny borrowed $500 for 5 years at 4% interest compounded annually. what is the total amount she will have paid when she pays of
1 answer:
Use the formula for compound interest,
Where P is the starting amount (500$), r is the rate of interest (0.04), n is the number of times the interest is compounded per unit (1 per year), and t is the amount of time it is compounded (5 years).
Now, plug it into the formula:
Do the math, and your answer is she must pay <span>608.32$ when she pays her debts.</span>
Where P is the starting amount (500$), r is the rate of interest (0.04), n is the number of times the interest is compounded per unit (1 per year), and t is the amount of time it is compounded (5 years).
Now, plug it into the formula:
Do the math, and your answer is she must pay <span>608.32$ when she pays her debts.</span>
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Answer:
The population does not need to be normally distributed for the sampling distribution of to be approximately normally distributed. Because of the central limit theorem. The sampling distribution of
is approximately normal.
Step-by-step explanation:
We have a random sample of size from a population with
and
. Because n is large enough (i.e., n > 30) and
and
are both finite, we can apply the central limit theorem that tell us that the sampling distribution of
is approximatelly normally distributed, this independently of the distribution of the random sample.
is asymptotically normally distributed is another way to state this.