Answered: Use the data in this story to estimate…

Use the data in this story to estimate the annual earnings of the average American. Do you think the estimate is reasonable?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Related questions

Q: 5. $8000 is deposited at a bank account that pays 3% interest compounded monthly. How much will the…

A: Explanation of the answer is as follows

Q: Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be…

A: Given that, Annual Amount=$31 Annual rate of interest=5.7% r=0.057 Time (T) = 2015-1626 T=389 years…

Q: If money is invested at 10% interest, compounded quarterly, the future value of the investment…

A: To complete the table, we can use the formula for compound interest (also called future value…

Q: The cost of attending your college has once again gone up. Although you have been told that…

A: The coefficient of Dpriv in the simplified model has increased dramatically, from 8 to406.79…

Q: What is the value of an investment(now) that will be worth $2,000 at the end of five years? Assume…

A: Note: Hey there! Thank you for the question. As we do not have access to the TVM solver of the…

Q: 1) Lucy invests $6500 at 3.2% p.a. interest compounded annually. Find the value of her investment…

A: Direectly use the formula for compound interest

Q: Suppose you invest $3,100.00 in an account with an annual interest rate 12% compounded monthly (1%…

A: Annual interest rate = 12% That is, 1% each month.

Q: Find what simple interest rate will be necessary for Sonny to get a 40% return on a $500 investment…

Q: If money is invested at 10% interest, compounded quarterly, the future value of the investment…

A: The objective of the question is to find the future value of an investment of $600 at 10% interest,…

Q: Suppose you deposit $10,000 into an account (single deposit). How much money will you have after 5…

A: topic- exponential function

Q: Find the accumulated present value of a 11-year $70,000 continuous income stream that has been…

Q: Suppose that you invested in a mutual fund that guaranteed 6.5% annual interest, compounded monthly.…

A: given p=principle=$3500r=rate per annum=6.5%n=4 =time we have find A…

Q: If $3,700 was invested 4 months ago at a simple interest rate of 1.9%, what would be the value of…

A: A $3,700 was invested 4 months ago at a simple interest rate of 1.9%.

Q: Stocks in a certain industry depreciated by 5.4% in the first 8 months of 1993. Assuming that this…

A: For the given amount of $30,000 if depreciated 5.45% in the first 8 months the investment be worth…

Q: If inflation has been running at 3.65% per year and a new car costs $18,900 today, what would it…

Q: Suppose that you invest $5,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A: Given: Principle amount (P): $5,000 Rate of interest (R): 6% Time period (t): 5 years Compound…

Q: Suppose that you have $15,000 in a rather risky investment recommended by your financial advisor.…

Q: You are offered four investments. What is the best investment? a.The first promises to earn 20%…

A: Find the effective interest rate of all the given nominal interest using the following formula.…

Q: Find the present value of a continuous income stream of $18,000 per year for 20 years at 2.8%…

Q: Stocks in a certain industry depreciated by 5.4% in the first 8 months of 1993. Assuming that this…

Q: Suppose Matt has invested in a mutual fund that is compounded annually at 14.51%. How long will it…

Q: If you deposit $100 in a bank account that yields an annual percentage rate (APR) of 6%, what will…

A: From the given information, the deposit amount is $ 100.Percentage rate is 6% or 0.06.

Q: What is the simple interest rate on a $1650 investment paying $176.72 interest in 5.1 years? %…

A: Principal amount is 1650, interest is 176.72 and time is 5.1

Question

In The Boston Globe on September 30, 2015 you could read that Warren Buffet is worth
$62 billion, and that. . .if he gave up on aggressive investing and put his money into a
simple savings account, with returns at a bare 1 percent, he’d earn more in interest each
hour than the average American earns in a year.
Use the data in this story to estimate the annual earnings of the average American. Do you think the estimate is reasonable?

Expert Solution

Step 1

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Suppose that you invest $7,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to calculate the compound interest (in $) on your investment.
Mac Corp. is considering a project that has the following cash flow data. What is the project’s internal rate of return (IRR)? Year 0 1 2 3 Cash flow -$1,000 $425 $425 $425
Financial analysts forecast Safeco Corp's (SAF) growth rate for the future to be 8 percent. Safeco's recent dividend was $0.88. What is the value of Safeco stock when the required return is 12 percent? (Round your answer to 2 decimal places.)
If $1,000 is invested at 16% interest, compounded annually, for five years, what is the ending balance? * O $1,225,54 $22,255.40 O $2,100.34 O $225.54
Is this statement true: Suppose I have an investment portfolio woth $10,000, and it fell 10% last year, but then it rose back up 10%. How much money would be left once it lowered 10% then rose 10%. Is there a loss, what is the percent of the decrease, to the nearest tenth of a percent?
A retirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. What will the account be worth in 20years? What if the deposit was calculated using simple interest? Could you see the situation in a graph? From what point one is better than the other?
The following homework problems pertain to Section 7.3. Suppose you borrow $2500 at a 21% annual interest rate, compounded manthly (1.75% each month). At the end of each month, you make a $175 payment Use this information to complete the table below. Round to the nearest cent as needed. 1.75% Interest Month Prior Balance Monthly Payment Ending Balance on Prior Balance $2500 2. $2500 3. $2235.2 4 $2235.2 $175 5 $36.74 $175 Calcutator Submit Question
A store shows a net profit of $65,250 for the year. If the store profit increases by 3.75% per year for the next 15 years what will the net profit be at that point?
"mar 35. A customer deposits $2000 in a savings account that pays 5.2% interest compounded quarterly. How much money will the customer have in the account after 5 years? a. $2589.52 b. $2576.97 c. $2133.42 d. $2592.40 68,
3. Suppose that there are two bank accounts, each earning 2% interest, compounded contin- uously. You invest $10 in one account and $5000 in the other. Write 2-3 sentences about how much time it will take each account to double in value.
What is the simple interest rate on a $1600 investment paying $580.32 interest in 11.7 years? % (round to the nearest tenth of a percent)
Given the statement: In 6 trading days, the stock price rose $29.59. How rapidly, on average, has the stock price changed on a daily basis?