A Survey of Banks Revealed the Following Distribution for the Interest

question 140

Multiple Choice

A survey of banks revealed the following distribution for the interest rate being charged on a home loan (based on a 30-year mortgage with a 10% down payment) on a certain date in the past. $$\begin{array} { c | c | c | c | c | c } \text { Interest Rate } & \begin{array} { c } 3.20 \% \\\text { to } \\3.29 \%\end{array} & \begin{array} { c } 3.30 \% \\\text { to }\end{array} & \begin{array} { c } 3.40 \% \\\text { to } \\3.39 \%\end{array} & \begin{array} { c } 3.50 \% \\\text { to } \\3.59 \%\end{array} & \begin{array} { c } 3.60 \% \\\text { and } \\\text { above }\end{array} \\\hline \hline \text { Probability } & 0.12 & 0.23 & 0.24 & 0.35 & 0.06\end{array}$$ If a bank is selected at random from this distribution, what is the chance that the interest rate charged on a home loan will exceed 3.49%?

• A)0.06
• B)0.41
• C)0.59
• D)1.00

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