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    Normal distributions , TVM

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    1.Consider the normal distributions drawn below (with different scales)

    They both have m = 20 and the area of the shaded region of each is 0.90. Which of the following holds?
    a. x1 < x2
    b. x1 > x2
    c. x1 = x2
    d. There is not enough information
    e. x1 ³ x2

    2.If you deposit $5000 into a fund paying 6% interest compounded quarterly, how much can you withdraw at the end of each quarter for 5 years?
    a. $135.92
    b. $970.45
    c. $291.23
    d. $215.17
    e. none of the above

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    https://brainmass.com/business/the-time-value-of-money/normal-distributions-tvm-33782

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    They both have m = 20 and the area of the shaded region of each is 0.90. Which of the following holds?
    a. x1 < x2
    b. x1 > x2
    c. x1 = x2
    d. There is not enough information
    e. x1 ³ x2
    Answer: a. x1 < x2

    For x1
    Mean=M = 20.00
    Standard deviation =s= 5.00
    Z corresponding to 90% is 1.2816
    z=(x-M ...

    Solution Summary

    Answers 2 questions on Normal distributions , TVM (Time Value of Money)

    $2.19

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