1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleonysh [2.5K]
3 years ago
14

Michael has been saving his money and wants to invest it. After doing some research, he has decided to invest $20,000 into a Cer

tificate of Deposit. The interest rate on the CD is 3% with a term of five years, and the interest is paid out annually. Based on recent inflation, Michael is planning on an annual inflation rate of 2%. How much interest will Michael earn on this CD in the first year, based on the real interest rate? $200 $600 $1,000 $1,400
IT IS NOT $600!!! THE CORRECT ANSWER IS $200 ON EDGE2020
Mathematics
2 answers:
LekaFEV [45]3 years ago
4 0

Answer:

Interest earned= $200

Step-by-step explanation:

Giving the following information:

Initial investment= $20,000

Interest rate= 3%

Inflation rate= 2%

First, we need to calculate the real interest rate. <u>The inflation rate decreases the value of money through time. We need to deduct from the interest rate, the inflation rate.</u>

Real interest rate= 0.03 - 0.02= 0.01

<u>Now, we can calculate the interest earned in year 1:</u>

Interest earned= PV*(1+i)^n - PV

Interest earned= 20,000*(1.01^1) - 20,000

Interest earned= $200

SSSSS [86.1K]3 years ago
4 0

Answer:

200

Step-by-step explanation:

You might be interested in
The CEO of the Jen and Benny's ice cream company is concerned about the net weight of ice cream in their 50 ounce ice cream tubs
MissTica

Answer:

t=\frac{54.98-52}{\frac{8.43}{\sqrt{26}}}=1.8025  

We need to find the degrees of freedom given by:

df = n-1= 26-1 = 25

Since is a right tailed test the p value would be:  

p_v =P(t_{25}>1.8025)=0.0418  

If we compare the p value and the significance level given \alpha=0.05 we see that p_v so we can conclude that we have enough evidence to reject the null hypothesis, so we can conclude that the average is higher than 52 at 5% of signficance.  

Step-by-step explanation:

Data given and notation  

\bar X=54.98 represent the sample mean

s=8.43 represent the sample deviation

n=26 sample size  

\mu_o =52 represent the value that we want to test  

\alpha=0.05 represent the significance level for the hypothesis test.  

z would represent the statistic (variable of interest)  

p_v represent the p value for the test (variable of interest)  

State the null and alternative hypotheses.  

We need to conduct a hypothesis in order to check if the mean is higher than 52, the system of hypothesis would be:  

Null hypothesis:\mu \leq 52  

Alternative hypothesis:\mu > 52  

Since we don't know the population deviation, is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:  

t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}} (1)  

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".  

Calculate the statistic  

We can replace in formula (1) the info given like this:  

t=\frac{54.98-52}{\frac{8.43}{\sqrt{26}}}=1.8025  

P-value  

We need to find the degrees of freedom given by:

df = n-1= 26-1 = 25

Since is a right tailed test the p value would be:  

p_v =P(t_{25}>1.8025)=0.0418  

Conclusion  

If we compare the p value and the significance level given \alpha=0.05 we see that p_v so we can conclude that we have enough evidence to reject the null hypothesis, so we can conclude that the average is higher than 52 at 5% of signficance.  

7 0
3 years ago
Read 2 more answers
20 is 15% of what number?<br> PLEASE ANSWER ILL GIVE BRAINLIESTTTT
Taya2010 [7]

Answer:

133.33

Step-by-step explanation:

8 0
3 years ago
Read 2 more answers
Which is the closest to the curve of best fit for the data shown?
docker41 [41]

Answer:

data shows a positive or negative correlation, we can model the trend in the data using a line of best fit. Example 1 ... A curve of best fit is used to find an equation that best fits a quadratic function.

Step-by-step explanation:

7 0
3 years ago
You deposit $200 each month into an account earning 3% interest compounded monthly.
zvonat [6]

The total amount of money accrued ( principal and interest ) in 35 years is $570.78.

<h3>What is the total amount accrued?</h3>

The formula for compound interest is expressed as;

A = P( 1 + r/t )^(n×t)

Given the data in the question;

  • Principal P = $200
  • Rate r = 3% = 3/100 = 0.03
  • Compounded monthly n = 12
  • Time t = 35
  • Amount accrued in 35 years A = ?

Plug the given values into the equation above.

A = P( 1 + r/n )^(n×t)

A = 200( 1 + 0.03/12 )^(12×35)

A = 200( 1 + 0.0025 )^(420)

A = 200( 1.0025 )^(420)

A = 200( 2.85390914 )

A = $570.78

Therefore, the total amount of money accrued ( principal and interest ) in 35 years is $570.78.

Learn more about compound interest here: brainly.com/question/27128740

#SPJ1

7 0
1 year ago
I need help plz it is for khan academy
Schach [20]

Answer:

slope = 1

Step-by-step explanation:

Calculate the slope m using the slope formula

m = \frac{y_{2}-y_{1}  }{x_{2}-x_{1}  }

with (x₁, y₁ ) = (- 1, 0) and (x₂, y₂ ) = (0, 1)

m = \frac{1-0}{0+1} = 1

7 0
3 years ago
Other questions:
  • One normal curve has a mean of 24 and a standard deviation of 3. A second normal curve has a mean of 3 and a standard deviation
    8·2 answers
  • The length of the sofa in justin house is 89 inches what is the metric equivalent in centimeters
    5·2 answers
  • Find the area of this figure
    5·1 answer
  • Determine whether y varies directly with x. Find the constant of variation. Write the function rule x 5 7 9 y 6 11 16
    10·1 answer
  • In a newspaper, it was reported that yearly robberies in Springfield were up 50% to 279 in 2012 from 2011. How many robberies we
    12·1 answer
  • This 2 pls i need help with explanation sum
    9·1 answer
  • How do I find area of a shaded region​
    9·1 answer
  • The graph of a quadratic function is shown on the grid. Which equation best represents the axis of symmetry?
    8·1 answer
  • I'm failing lol. HELP me with math??
    13·1 answer
  • a starting lineup in a basketball consists of two guards, two forwards, and a center. a. a certain college team has on its roste
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!