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Flashcards in STATS Deck (6):
1

How many times out of 12000 attempts would a person roll all the same numbers using 5 dice 

#time=a=1200

#object=b=5

#faces=c=6

1200/(64)

a/c(b-1)

2

at the end of twelve months Terry deposited $100 in a savings account that pays 6% anual interest compounde monthly. Compute the balance in Terry's account immediately after the twelfth payment .

F=100 (F/A)0.512=1234

3

How many years are required for an amount of money to triple if it is invested at 4% interest rate?

3P=P(F/P)4n*(F/P)4n

(1.04)n=3

n=28

4

Twenty-one equal end-of-year deposits are made into  savings account tht pays 4% interest. Compute the amount of each deposit that will permit withdrawls of $10,000 at the ends of the eighteenth through twenty-first years, leaving the account empty.

0=X(F/A)421-10,000(F/A)44

solve X

X=1328

5

profits generated by Excelsys Inc. were $10,000 for the first year and increased by $1000 each year. If the profits for five yr. of operation were invested at an 8% rate of return, how much money had accumulated at the end of the fifth year?

F=10,000 (F/A)85+1000(F/A)85(A/G)85

6

Development costs of a new product are estimated to be $70,000 per year for three years. Annual profits from the sale of the new product, estimated to be $80,000 will begin in the fourth year and continue for ten years. Using a rate of return of 20%, compute the present value of the venture.

P=-70,000(P/A)203+80,000 (P/A)2010(P/F)203