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statuscvo [17]
3 years ago
7

Nasser invested $550 at 6% simple interest for 5 years. What was his investment worth after 5

Mathematics
1 answer:
kirill [66]3 years ago
4 0

Answer:

B. $715

Step-by-step explanation:

By multiplying your starting value, in this case $550, and your (simple) interest, 6%, or by 1.06 as 0.06 being your interest value and the 1.00 accommodating your starting value you will multiply, $550 × 1.06 = $583. Repeat these steps for however many years you are account for, in this case, five years. Giving you a total of $715

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Step-by-step explanation:

The probability that the random variable X takes the value x is given by P(X=x) = 25Cx 0.05^x0.95^{25-x}. Then,

(a) P(X\leq) = (25C0)(0.05^0)(0.95^{25}) + (25C1)(0.05^1)(0.95^{24}) + (25C2)(0.05^2)(0.95^{23})=  0.873

(b) P(X\geq5) = 1-P(X\leq4) = 1 - (0.873 + (25C3)(0.05^3)(0.95^{22}) + (25C4)(0.05^4)(0.95^{21})) = 1 - (0.873 + 0.12) = 0.007

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(e) E(X) = np = (25)(0.05) = 1.25 and Sd(X) = \sqrt{Var(X)} = \sqrt{np(1-p)} = 1.09

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