C. D. Rom has just given an insurance company $34,500. In return, he will receive an annuity of $4,200 for 20 years. At what rat
e of return must the insurance company invest this $34,500 in order to make the annual payments? (Do not round intermediate calculations)
1 answer:
Answer:
10.53%
Explanation:
In this question, we use the RATE formula that is shown in the attachment. Kindly find it below:
Data provided
Present value = $34,500
Future value or Face value = $0
PMT = $4,200
NPER = 11 years × 2 = 22 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the rate of return is 10.53%
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Answer:
probability = 0.3557
Explanation:
given data
young adults ages = 20 to 39
skip eating breakfast p = 0.238
random sample of size n = 500
to find out
we find the probability that the number of individuals in Lance's sample who regularly skip breakfast is greater than 122
solution
we use here Normal Approximation to Binomial Distribution
so first consider random variable = x
so
x~ Bin (n,p) .............1
and here Normal Approximation will be
x~ Normal Approx (np, npq) .................2
so it will be
x~ (500, 0.238)
as here we know q will be
q = 1 - p
q = 1 - 0.238
q = 0.762 .............3
so
here x~ Normal Approx (119, 90.678)
and now we get P(X > 122)
so
We will convert it to Z by as that
z = ................4
and here
mean = np
and standard deviation
so here for P(X > 122)
............5
and it is P(Z>0.37)
so
probability = 1 - P(Z<0.37)
now we use here z table for value
probability = 1-0.6443
probability = 0.3557