If the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously, how much will be in the ac
2 answers:
Answer:
$45950.57
Step-by-step explanation:
We have been given that the Laffite family deposits $8500 in a savings account at 6.75% interest, compounded continuously.
To find the amount in the account after 25 years we will use continuous compounded interest formula.
,where,
A = Final amount after t years,
P = Principal amount,
e = Mathematical constant,
r = Interest rate in decimal form,
t = Time.
Let us convert our given rate in decimal form.
Upon substituting our given values in above formula we will get,
Therefore, there will be $45950.57 in the account after 25 years.
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We are asked to determine the correlation factor "r" of the given table. To do that we will first label the column for "Quality" as "x" and the column for "Easiness" as "y". Like this:
Now, we create another column with the product of "x" and "y". Like this:
Now, we will add another column with the squares of the values of "x". Like this:
Now, we add another column with the squares of the values of "y":
Now, we sum the values on each of the columns:
Now, to get the correlation factor we use the following formula:
Where:
Now we substitute the values, we get:
Solving the operations:
Therefore, the correlation factor is 0.858. If the correlation factor approaches the values of +1, this means that there is a strong linear correlation between the variables "x" and "y" and this correlation tends to be with a positive slope.
