Determine the Principal P That Must Be Invested at Interest $r = 7.5 \%$

question 104

Multiple Choice

Determine the principal P that must be invested at interest rate r compounded continuously, so that $1,000,000 will be available for retirement in years $r = 7.5 \%$ , $t = 40$ .

• A)$49787.07
• B)$50787.07
• C)$49000.04
• D)$40000.06

Analyze the effects of fluctuations in the exchange and interest rates on the open-economy macroeconomic model.

Identify historical trends of U.S. economic indicators and their implications.

Understand the impact of interest rate changes on international asset transactions.

Explain the dynamics of surplus and deficits in the foreign exchange market and their effects on net exports.

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Definitions:

T-statistic

A type of statistic used in hypothesis testing, calculated from sample data to assess the strength of the evidence against the null hypothesis.

Z-score

A Z-score is a statistical measurement describing the number of standard deviations a data point is from the mean of a data set, used in standardizing data and for hypothesis testing.

Theoretical Distribution

A mathematical function that represents the possible values and their associated probabilities of a random variable.

Sampling Distribution

A specific statistic's probability distribution, resulting from a sample taken at random.