The t-value measures the size of the difference relative to the variation in your sample data. Put another way, T is simply the calculated difference represented in units of standard error. The greater the magnitude of T, the greater the evidence against the null hypothesis.
Using the pythagoras theorem for a right-angled triangle:-
x^2 = 13*2 - 9^2 = 88
x = sqrt 88 = 2 sqrt 22
15.2 Is the answer...Hope this helps
First, let's convert the nominal interest(r) into effective interest rate(i). The formula is
i = (1 + r/m)^m - 1
where m is the number of quarters in a year (m = 4)
i = (1 + 0.024/4)⁴ -1
i = 0.024217
The model would then be:
Future Worth = $3,000(1 + 0.024217)^t, where t is the number of years
