Another easy question for Branilist....
2 answers:
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9514 1404 393
Answer:
3.65% monthly
Step-by-step explanation:
The same amount is invested for the same period in all accounts, so we only need to determine the effective annual rate in order to compare the accounts.
For compounding annual rate r n times per year, the effective annual rate is ...
(1 +r/n)^n -1
For the same rate r, larger values of n cause effective rate to be higher. As a consequence, we know that 3.65% compounded quarterly will not have as great a yield as 3.65% compounded monthly. The effective rate for the monthly compounding is ...
(1 +0.0365/12)^12 -1 = 3.712%
The effective rate for continuous compounding is ...
e^r -1
For a continuously compounded rate of 3.6%, the effective annual rate is ...
e^0.036 -1 = 3.666%
This tells us the best yield is in the account bearing 3.65% compounded monthly.
_____
If i is the effective annual rate of interest as computed by the methods above, then the 10-year account balance will be ...
10000×(1 +i)^10
This is the formula used in the spreadsheet to calculate the balances shown.
Answer:
The mean and standard deviation of the number of cars recovered after being stolen is 522 and 8.24 respectively.
Step-by-step explanation:
We are given that according to insurance records, a car with a certain protection system will be recovered 87% of the time.
Also, 600 stolen cars are randomly selected.
Let X = <u><em>Number of cars recovered after being stolen</em></u>
The above situation can be represented through binomial distribution;
where, n = number of trials = 600 cars
r = number of success
p = probability of success which in our question is the probability
that car with a certain protection system will be recovered,
i.e. p = 87%.
So, X ~ Binom(n = 600, p = 0.87)
Now, the mean of X, E(X) =
= = 522
Also, the standard deviation of X, S.D.(X) =
=
= 8.24