(d) If found a bank that paid 6% interest compounded annually rather you than 5%, how much (in $) would you have in the account after 30 years? $
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
![As part of your retirement plan, you have decided to deposit $9,000 at the
beginning of each year into an account paying 5% interest compounded
annually. (Round your answers to the nearest cent.)
(a) How much (in $) would the account be worth after 10 years?
$ 118861
(b) How much (in $) would the account be worth after 20 years?
$ 312473
(c) When you retire in 30 years, what will be the total worth (in $) of the
account?
627847
(d) If you found a bank that paid 6% interest compounded annually rather
than 5%, how much (in $) would you have in the account after 30 years?
$
(e) Use the future value of an annuity due formula to calculate how much (in
$) you would have in the account after 30 years if the bank in part (d)
switched from annual compounding to monthly compounding and you
deposited $750 at the beginning of each month instead of $9,000 at the
beginning of each year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9f272cb-f6e2-425e-868c-52aa0f82d1e1%2Fd26c9e44-120c-4810-bf1d-8d8d7146ea67%2F1394erj_processed.jpeg&w=3840&q=75)
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