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kotegsom [21]
3 years ago
13

If you have a 1 in 10 chance of winning, how many times will you need to try to win 1 time

Mathematics
1 answer:
pshichka [43]3 years ago
5 0
Mathematically, 10 times.

Realistically, you can't tell.
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Based on the information, Christian would have $5525.5 of an annuity.

<h3>How to calculate the annuity?</h3>

According to the given information, the number of coffees per week is 3 then, per month is 3x4 = 12

Each coffee is $4.5. Then monthly expenditure for coffees is 12 x 4.5 = $54

Rate of interest r = 1.6% = 1.6/100 = 0.016 and for monthly compounding r = 0.016/12 = 0.00133

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We can use the formula for finding the future value as below

FV = C x [ ( 1 + r )n-1 ] / ( r )

FV = 54 x [ ( 1 + 0.00133 )96 – 1 ] / (0.00133)

= 54 x [ (1.13609 - 1)] / (0.00133)

= 54 x 0.13609 / (0.00133)

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Therefore Christian would have $5525.5 of the annuity.

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