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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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The annual rainfall in a certain region is approximately normally distributed with mean 41.4 inches and standard deviation 5.7 i
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Complete question :

The annual rainfall in a certain region is approximately normally distributed with mean 41.4 inches and standard deviation 5.7 inches. Round answers to the nearest tenth of a percent. a) What percentage of years will have an annual rainfall of less than 43 inches? b) What percentage of years will have an annual rainfall of more than 39 inches? c) What percentage of years will have an annual rainfall of between 38 inches and 42 inches?

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0.61053

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Step-by-step explanation:

Given that :

Mean (m) = 41.4 inches

Standard deviation (s) = 5.7 inches

a) What percentage of years will have an annual rainfall of less than 43 inches?

P(x < 43)

USing the relation to obtain the standardized score (Z) :

Z = (x - m) / s

Z = (43 - 41.4) / 5.7 = 0.2807017

p(Z < 0.2807) = 0.61053 ( Z probability calculator)

b) What percentage of years will have an annual rainfall of more than 39 inches? c)

P(x > 39)

USing the relation to obtain the standardized score (Z) :

Z = (x - m) / s

Z = (39 - 41.4) / 5.7 = −0.421052

p(Z > −0.421052) = 0.66314 ( Z probability calculator)

What percentage of years will have an annual rainfall of between 38 inches and 42 inches?

P(x < 38)

USing the relation to obtain the standardized score (Z) :

Z = (x - m) / s

Z = (38 - 41.4) / 5.7 = −0.596491

p(Z < −0.596491) = 0.27545 ( Z probability calculator)

P(x < 42)

USing the relation to obtain the standardized score (Z) :

Z = (x - m) / s

Z = (42 - 41.4) / 5.7 = 0.1052631

p(Z < 0.1052631) = 0.54192 ( Z probability calculator)

0.54192 - 0.27545 = 0.26647

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3 years ago
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