Find the principal needed now to get to $25,500 after 10 years at 6% compounded continuously
1 answer:
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Answer:
0.3425 = 34.25% probability it will be off probation in February 2020
Step-by-step explanation:
We have these desired outcomes:
Off probation in July 2019, with 0.25 probability, then continuing off in January, with 1 - 0.08 = 0.92 probability.
Still in probation in July 2019, with 1 - 0.25 = 0.75 probability, then coming off in January, with 0.15 probability.
What is the probability it will be off probation in February 2020?
0.3425 = 34.25% probability it will be off probation in February 2020