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JulijaS [17]
3 years ago
12

Suppose that on January 1, 2018, you buy a bond for $2,000 that will pay interest of 3.6% per year compounded continuously for 2

0 years. You never withdraw any of the interest earned on the bond. (a) What will the bond be worth on January 1, 2038?
Mathematics
1 answer:
Lady_Fox [76]3 years ago
8 0

Answer: $4108.87

Step-by-step explanation:

Given : Present value : P= \$2,000

The number of time period : t=20\text{ years}

The rate of interest : r=3.6\%\ =0.036

Let P be the present value of bond .

The formula to calculate the future value is given by :-

FV=Pe^{rt}

\\\\\Rightarrow\ FV=2000e^{0.036\times20}}\\\\\Rightarrow\ FV=4108.86642129\approx4108.87

Hence, the future value of the bond on January 1, 2038 would be $4108.87 .

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Answer:

Step-by-step explanation:

This is a test of 2 independent groups. The population standard deviations are not known. Let μemployed(μ1) be the sample mean of students who are employed and μnot employed(μ2) be the sample mean of students who are not employed

The random variable is μ1 - μ2 = difference in the mean of the employed and unemployed students.

We would set up the hypothesis.

The null hypothesis is

H0 : μ1 = μ2 H0 : μ1 - μ2 = 0

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Since sample standard deviation is known, we would determine the test statistic by using the t test. The formula is

(μ1 - μ2)/√(s1²/n1 + s2²/n2)

From the information given,

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s1 = 0.475

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t = (3.22 - 3.33)/√(0.475²/172 + 0.524²/116)

t = - 1.81

The formula for determining the degree of freedom is

df = [s1²/n1 + s2²/n2]²/(1/n1 - 1)(s1²/n1)² + (1/n2 - 1)(s2²/n2)²

df = [0.475²/172 + 0.524²/116]²/[(1/172 - 1)(0.475²/172)² + (1/116 - 1)(0.524²/116)²] = 0.00001353363/0.00000005878

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We would determine the probability value from the t test calculator. It becomes

p value = 0.036

Since alpha, 0.05 > than the p value, 0.036, then we would reject the null hypothesis.

Therefore, at a 5% significant level, this information support the hypothesis that for students at this university, those who are not employed have a higher mean GPA than those who are employed

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