What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%? Group of answer choic
1 answer:
Answer:
The PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5% is $20,352.
Step-by-step explanation:
P = PMT [(1 - (1 / (1 + r))) / r]
= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]
= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]
= 2,700 [(1 - (1 / (1.708)) / 0.05]
= 2,700 [(1 - 0.58)) / 0.05]
= 2,700 [(0.41457) / 0.05]
= 2,700(7.53)
=$ 20,352
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Answer:
The Mean is not equal to $31,129.
Step-by-step explanation:
Consider the provided information.
The mean is $31129
Thus, the null hypothesis
Alternative hypothesis
A random sample of 15 firstyear CMAs in Denver produces a mean salary of $32,279, with a standard deviation of $1,797.
Thus the value mean of sample is 32279, standard deviation is 1797 and number of samples are 15.
Now use the 2 sided t-test.
Now substitute the respective values in the above formula.
Test Value = 2.4785 approximately
Now, find the corresponding p-value in your t-table with DF(degree of freedom) 14.
p = 0.0265
as the value of p < 0.05, so you reject null hypothesis.
Thus, the Mean is not equal to $31,129.