Answer:
0.8041
Step-by-step explanation:
We know that
μ=72 and σ=5
and P(65<X<78)
We can determine the Z value as (X-μ)/σ
P( 65<X<78 )=P( 65-72< X-μ<78-72)
To fine the Z values:
From the standard normal tables:
to find P ( Z<-1.4)
From the standard normal tables:
Therefore
Answer:
B. An increase in i, the interest rate, will create an increase in P, the monthly payment.
Step-by-step explanation:
We have the formula for the monthly payment as,
,
where P = monthly payment, i = rate of interest, PV = present value and n = time period.
Now, as i increase we get that (1+i) increases and so increases.
This gives us that, decreases and so
decreases
Therefore, increases.
So, we get that as i increases , the value of P will increase.
Hence, option B is correct.