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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

#### Solution Preview

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

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)

\$2.49