Narrative 11-2 Solve the Following Problems Using Either Tables 11-1 or 11-2

question 72

Short Answer

Narrative 11-2
Solve the following problems using either Tables 11-1 or 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent)
-Refer to Narrative in your text 11-2. Sigourney review invested $12,300 at the Midtown Credit Union at 6% interest compounded monthly.
A)What is the effective rate of this investment?
B)What will Sigourney's investment be worth after two years?

• A)What is the effective rate of this investment?
• B)What will Sigourney's investment be worth after two years?

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Definitions:

Standard Deviation

An indicator of how much the values in a set differ or spread out.

Normal Distribution

The normal distribution, often called the Gaussian distribution, is a bell-shaped curve that describes the spread of a characteristic throughout a population where most occurrences take place around the average value.

Positively Correlated

A relationship between two variables where both variables move in tandem, meaning that when one variable increases, the other does as well.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases, and vice versa.