If $5,000,000 were invested at 4% interest compound continuously, how much will the investment be worth in 30 years?
1 answer:
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Answer:
a: 0.8884
b: 0.9934
Step-by-step explanation:
We have µ = 300 and σ = 70. The sample size, n = 125.
For the sample to be within 8 units of the population mean, we would have sample values of 292 and 308, so we want to find:
P(292 < x < 308).
We need to find the z-scores that correspond to these values using the given data. See attached photo 1 for the calculation of these scores.
We have P(292 < x < 308) = 0.8884
Next we want the probability of the sample mean to be within 17 units of the population mean, so we want the values from 283 to 317. We want to find
P(283 < x < 317)
We need to find the z-scores that correspond to these values. See photo 2 for the calculation of these scores.
We have P(283 < x < 317) = 0.9934
