(Advanced Analysis) Alex Wants to Have $800 Saved Up at the End

question 109

Multiple Choice

(Advanced analysis) Alex wants to have $800 saved up at the end of 10 years. If he deposits $500 today, what annually compounded rate of interest would he have to earn to reach his goal?

• A) 4.8 percent
• B) 5.2 percent
• C) 5.7 percent
• D) 6.2 percent

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Definitions:

Coefficient Of Skewness

A statistical measure that quantifies the asymmetry of a distribution around its mean, indicating if the distribution leans to the left or right.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable, indicating how much the distribution leans to one side of the mean.

Positively Skewed

Describes a distribution of data where the tail on the right side of the histogram is longer or fatter than the left side, indicating that the majority of the data points are clustered to the left.

Histogram

A graphical representation of data using bars of different heights to illustrate the distribution of variables within intervals.