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SVEN [57.7K]
2 years ago
12

1. Yejin plans to retire at age 60. She wants to create an annuity fund, which will pay her a monthly allowance of $4000 during

her retirement. She wants to save enough money so that the payments lasts for 30 years. A financial advisor has told her the she can expect to earn 5% interest on her funds, compounded annually.
2. Yejin has just turned 28 years old. She currently has no retirement savings. She wants to save part of her salary each month into her annuity fund. Calculate the amount Yejin needs to save each month, to meet her retirement goal.
Mathematics
1 answer:
dolphi86 [110]2 years ago
3 0

9514 1404 393

Answer:

  $3891.10

Step-by-step explanation:

This question is a bit unusual in that the interest is compounded annually, but payments and withdrawals are made monthly. The effective monthly rate is ...

  1.05^(1/12) -1 = 0.407412378% = i

We assume that payments to the annuity are made at the end of the month, and that withdrawals are made at the beginning of the month. (The last payment and the first withdrawal are made on the same day.)

The amount of money required in the fund is ...

  A = $4000(1 -(1.00407^-360))/(1 -1.00407^-1) = $757,712.88

The amount of money needed each month to be put into the fund is P, where ...

  $757,712.88 = P(1 -1.00407)^(-12(60-28))/(1 -1.00407^-1) = 194.7297P

  P = $757,712.88/194.7297 = $3891.10

Yejin needs to save $3891.10 each month to meet her retirement goal.

_____

<em>Sanity check</em>

Yejin wants payments for 30 years from the fund to which she has contributed for 32 years. The similarity of the time periods means that Yejin's monthly contribution will need to be very similar to the amount she plans to withdraw.

The only ways to reduce the required contribution are to earn a higher interest on deposits, or to adjust the relative time periods (retire later).

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Answer:

2.865

Step-by-step explanation:

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Justin is constructing a line through point Q that is perpendicular to line n. He has already constructed the arcs shown. A line
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A random sample of 6 homes in Gainesville, Florida between 1800 and 2200 square feet had a mean of 212990 and a standard deviati
Andrej [43]

Answer:

The 95% confidence interval for the average price of a home in Gainesville of this size is between 183,772.5 square feet and 242,207.5 square feet.

Step-by-step explanation:

We have the standard deviation of the sample, so we use the students t-distribution.

The first step to solve this problem is finding how many degrees of freedom, we have. This is the sample size subtracted by 1. So

df = 6 - 1 = 5

Now, we have to find a value of T, which is found looking at the t table, with 5 degrees of freedom(y-axis) and a confidence level of 0.95(t_{95}). So we have T = 2.015

The margin of error is:

M = T*s = 2.015*14500 = 29217.5.

In which s is the standard deviation of the sample.

The lower end of the interval is the sample mean subtracted by M. So it is 212990 - 29217.5 = 183,772.5 square feet

The upper end of the interval is the sample mean added to M. So it is 212990 + 29217.5 = 242,207.5 square feet

The 95% confidence interval for the average price of a home in Gainesville of this size is between 183,772.5 square feet and 242,207.5 square feet.

3 0
2 years ago
Twenty students from Sherman High School were accepted at Wallaby University. Of those students, eight were offered military sch
Shalnov [3]

Answer:

Step-by-step explanation:

This is a test of 2 independent groups. The population standard deviations are not known. it is a two-tailed test. Let w be the subscript for scores of students with military scholarship and o be the subscript for scores of students without military scholarship.

Therefore, the population means would be μw and μo.

The random variable is xw - xo = difference in the sample mean scores of students with military scholarships and students without.

For students with military scholarship,

n = 8

Mean = (850 + 925 + 980 + 1080 + 1200 + 1220 + 1240 + 1300)/8

Mean = 1099.375

Standard deviation = √(summation(x - mean)/n

Summation(x - mean) = (850 - 1099.375)^2 + (925 - 1099.375)^2 + (980 - 1099.375)^2 + (1080 - 1099.375)^2 + (1200 - 1099.375)^2 + (1220 - 1099.375)^2 + (1240 - 1099.375)^2 + (1300 -1099.375)^2 = 191921.875

Standard deviation = √(191921.875/8 = 154.89

For students without military scholarship,

n = 12

Mean = (820 + 850 + 980 + 1010 + 1020 + 1080 + 1100 + 1120 + 1120 + 1200 + 1220 + 1330)/12

Mean = 1073.83

Summation(x - mean) = (820 - 1073.83)^2 + (850 - 1073.83)^2 + (980 - 1073.83)^2 + (1010 - 1073.83)^2 + (1020 - 1073.83)^2 + (1080 - 1073.83)^2 + (1100 - 1073.83)^2 + (1120 - 1073.83)^2 + (1120 - 1073.83)^2 + (1200 - 1073.83)^2 + (1220 - 1073.83)^2 + (1330 - 1073.83)^2 = 238199.4268

Standard deviation = √(238199.4268/12 = 140.89

We would set up the hypothesis.

The null hypothesis is

H0 : μw = μo H0 : μw - μo = 0

The alternative hypothesis is

Ha : μw ≠ μo Ha : μw - μo ≠ 0

Since sample standard deviation is known, we would determine the test statistic by using the t test. The formula is

(xw - xo)/√(sw²/nw + so²/no)

From the information given,

xw = 1099.375

xo = 1073.83

sw = 154.89

so = 140.89

nw = 8

no = 12

t = (1099.375 - 1073.83)/√(154.89²/8 + 140.89²/12)

t = 0.37

The formula for determining the degree of freedom is

df = [sw²/nw + so²/no]²/(1/nw - 1)(sw²/nw)² + (1/no - 1)(so²/no)²

df = [154.89²/8 + 140.89²/12]²/(1/8 - 1)(154.89²/8)² + (1/12 - 1)(140.89²/12)² = 21650688.37/1533492.15

df = 14

We would determine the probability value from the t test calculator. It becomes

p value = 0.72

Since the level of significance of 0.05 < the p value of 0.72, we would not reject the null hypothesis.

Therefore, these data do not provide convincing evidence of a difference in SAT scores between students with and without a military scholarship.

Part B

The formula for determining the confidence interval for the difference of two population means is expressed as

z = (xw - xo) ± z ×√(sw²/nw + so²/no)

For a 95% confidence interval, the z score is 1.96

xw - xo = 1099.375 - 1073.83 = 25.55

z√(sw²/nw + so²/no) = 1.96 × √(154.89²/8 + 140.89²/12) = 1.96 × √2998.86 + 1654.17)

= 133.7

The confidence interval is

25.55 ± 133.7

6 0
2 years ago
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