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Normal distributions , TVM

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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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