Calculate the Amount of Interest That Would Be Earned on an Account

question 165

Multiple Choice

Calculate the amount of interest that would be earned on an account of $59,500 at 7.2% for 133 days.

• A) $4,284
• B) $1,561
• C) $1,013
• D) $2,229
• E) $3,771

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Definitions:

Unbiased Coin

A term referring to a coin that has an equal likelihood of landing on heads or tails when flipped.

Tosses

In a statistical context, refers to the act of flipping a coin to produce random outcomes of heads or tails.

Binomial Distribution

A probability distribution that summarizes the likelihood of a variable to take one of two independent values under a given set of parameters.

Probability Of Success

The likelihood that a specified event or outcome will occur, often utilized in the context of trials or experiments.