Becky received a statement on her Certificate of Deposit showing that her investment had returned $6,336 over its life. If the C
1 answer:
The amount of money returned as interest depends on the initial
amount, the interest rate and the number of years.
Response:
- The money has been invested for <u>9 years</u>
Given:
The return on investment = $6,336
Amount the Certificate of Deposit pays = 4.4% simple interest
The initial investment (the principal), P= $16,000
Required:
The duration the initial amount of money had been invested.
Solution:
Interest = Principal × Rate × Time
Which gives;
Therefore;
- The duration the money had been invested = <u>9 years</u>
Learn more about simple interest here:
You might be interested in
Answer:
The expected value of the profit is $-1
Step-by-step explanation:
The expected value of any discrete variable X is calculate as:
E(X)=X1*P(X1)+X2*P(X3)+...+X3*P(X3)
Where X1, X2, ..., X3 are the values that the variable can take and P(X1), P(X2), ..., P(X3) are their probabilities.
In this case the variable X is the dollars that can win, so:
X1=$2,000
X2=$300
x3=$20
X4=$0
Then the probabilities can be calculate as:
Replacing the variables and probabilities on the equation of expected value we get:
E(X)=$4
Additionally, the student bought a ticket by $5, so the expected profit can be calculate as:
Expected Profit = Expected Earnings - Cost = $4 - $5 = $-1
Finally, the expected value of the profit is $-1