# 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 Â³ 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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#### 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 Â³ 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)