Solve the Problem

question 203

Multiple Choice

Solve the problem. Round to the nearest tenth unless indicated otherwise.
-A bank's loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. Find P60, the score which separates the lower 60% from the top 40%.

• A) 207.8
• B) 211.3
• C) 212.5
• D) 187.5

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Definitions:

Useful Life

The estimated period over which an asset is expected to be utilized by an entity, affecting its depreciation or amortization rates.

Carrying Amount

The value at which an asset or liability is recognized on the balance sheet after deducting any accumulated depreciation, impairment, or amortization.

Technology

The application of scientific knowledge for practical purposes, specifically in industry and commerce, including the development and use of digital tools and systems.

Straight-Line Method

An accounting method of depreciation where the value of a fixed asset is reduced uniformly over its useful life.