Answer:
The balance is $5989.5
Step-by-step explanation:
The savings plan balance is given by the following formula:
In which A is the savings plan balance, P is the monthly payment, APR is the annual percentage rate(decimal), n is the number of payments per year and Y is the number of years.
In this problem, we have that
Find the savings plan balance after 3 years with an APR of 7% and monthly payments of $150.
So we have to find A when .
So
The balance is $5989.5
Answer:
<em>D. 1 – NORM.DIST(100, 75, 10, TRUE)</em>
Step-by-step explanation:
<u>Excel's Normal Distribution</u>
The normal distribution has two parameters: the mean value and the standard deviation
. Since it's a symmetric function the values at the right side of the center value
The normal distribution is a function which integral cannot be expressed in terms of elemental functions. That is why the cumulative probability is usually found in tables, graphs or any digital media like Excel.
The formula NORM.DIST computes the cumulative values for the left tail or for a given mean and standard deviation. The parameters are
This last parameter tells the formula we want the cumulative left-tail probability or just the value at Xo. This value must be set to TRUE to compute the probability for a range of values, like in the problem at hand.
Since the formula computes the left-tail of the function, we must take advantage of the symmetry of the distribution if we want to compute right-tail values we just subtract the result from 1.
Thus, the correct formula to calculate the required probability is
D. 1 – NORM.DIST(100, 75, 10, TRUE)