maxine took out a loan for $3200 at 8% interest, compounded annually. if she makes yearly payments of $250, will she ever pay of
2 answers:
Solution:
As per the problem
Maxine took out a loan for $3200 at 8% interest, compounded annually.
she makes yearly payments of $250.
she will be able to Payoff her loan iff yearly payments made is greater than yearly interest.
Interest payable in first year
Interest payable in first year
This payable interest will goes on increasing year on year.
Hence Maxine will never payoff the loan.
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Answer:
We know that n = 50 and p =0.78.
We need to check the conditions in order to use the normal approximation.
Since both conditions are satisfied we can use the normal approximation and the distribution for the proportion is given by:
With the following parameters:
Step-by-step explanation:
Previous concepts
The binomial distribution is a "DISCRETE probability distribution that summarizes the probability that a value will take one of two independent values under a given set of parameters. The assumptions for the binomial distribution are that there is only one outcome for each trial, each trial has the same probability of success, and each trial is mutually exclusive, or independent of each other".
Solution to the problem
We know that n = 50 and p =0.78.
We need to check the conditions in order to use the normal approximation.
Since both conditions are satisfied we can use the normal approximation and the distribution for the proportion is given by:
With the following parameters: