An advertisement for a new toothpaste claims that it reduces cavities of children in their cavity-prone years. Cavities per year for this age group are normal with mean 3 and standard deviation 1. A study of 2,500 children who used this toothpaste found an average of 2. 95 cavities per child. Assume that the standard deviation of the number of cavities of a child using this new toothpaste remains equal to 1. (a) are these data strong enough, at the 5 percent level of significance, to establish the claim of the toothpaste advertisement? (b) do the data convince you to switch to this new toothpaste?.
Answers
At [tex]$5 \%$[/tex] level, the data is not strong enough to establish the claim of toothpaste advertisement.
It is recommended to switch to new toothpaste.
(a)
The null and alternative hypotheses are,
[tex]$$\begin{aligned}& H_0: \mu=3 \\& H_1: \mu < 3\end{aligned}$$[/tex]
Here, [tex]$\mu$[/tex] is the hypothesized mean.
Let the sample size be [tex]$n=2500$[/tex].
Let the sample mean be [tex]$\bar{x}=2.95$[/tex].
Let the population standard deviation be [tex]$\sigma=1$[/tex].
Since, the population standard deviation is known, one sample z-test is used to test the claim.
The test statistic is,
[tex]$$\begin{aligned}z & =\frac{\bar{x}-\mu}{\frac{\sigma}{\sqrt{n}}} \\= & \frac{2.95-3}{\frac{1}{\sqrt{2500}}} \\& =-2.5\end{aligned}$$[/tex]
So, the test statistic is, [tex]$z=-2.5$[/tex].
Let the level of significance be [tex]$\alpha=0.05$[/tex].
Find the critical value.
Using the standard normal distribution area tables, the left tail critical value is,
[tex]$$z_{0.05}=-1.645$$[/tex]
z score table attached at the end of solution.
The test statistic value is falls in the rejection region. Reject the null hypothesis. Therefore, it can be concluded that this does not support the null hypothesis at 5 percent level. So, at [tex]$5 \%$[/tex] level, the data is not strong enough to establish the claim of toothpaste advertisement.
(b)
The value of test statistic is also less than [tex]$-Z_{0.1}=-2.33$[/tex].
So, the claim cannot be established even at 1 percent level. It is recommended to switch to new toothpaste.
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Related Questions
The first barn contained 3 times more hay than the second one. After 20 tons of hay
were removed from the first barn and 20 tons were added to the second barn, the
amount of hay in the second barn was -
of the amount remaining in the first barn.
How many tons of hay were there in each barn?
Answers
Answer:
find the size of unknown angle in the following figure
Step-by-step explanation:
angle PQR=115°angle POR=xref. angle POR =2pQRthe solve by putting the given valu
The bank
agrees to give you a loan of
$45,000 with 2% simple interest over 5 years.
How much will your monthly payments be?
Answers
The monthly payment will be $84.375 to the bank.
What is simple interest?
The interest on a loan or principal amount can be easily calculated using simple interest. Simple interest is a notion that is employed across a wide range of industries, including banking, finance, automobiles, and more. When you pay back a loan, the monthly interest is deducted first, and any remaining funds are applied to the principle.S.I = Pnr / 100
where P = prinicipal
n= number of years
r = rate of interest
= 45000 * 2 * 8 / 100
= 810000 /100
= $8100
where, the divide by number of months
Balance= 8100 / 96
= $84.375
Hence, the monthly payment will be $84.375 to the bank.
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explain how regression toward the mean can describe two friends who have a fight then later go to the movies together.
Answers
Given the circumstances of the question, it is feasible that the two friends would feel that they overreacted during the argument, and as a result, they decide to see a movie together to make up for it.
Regression toward the mean is a statistical condition that involves events that the outcomes produce based solely on chance rather than on real facts. Therefore, it is impossible to forecast with precision what will happen in a regression towards the mean.
Example
Two military units are brought back, one with 20% casualties and the other with 50%. He compliments the first while criticizing the second. The two units return with the opposite outcomes the following time. He "learns" from this experience that praise reduces performance and berating strengthens it.
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{(a^2-16)÷(a^2-25)}÷{(a^2-2a-8)÷(a^2+10a+25)}
Answers
The answer is -[tex]\frac{(a + 4) ( a +5) }{(a +2)( a - 5)}[/tex]
Simplify is making something simple. In mathematics, simplification means reducing the expression/ fraction/problem in a simpler form by using different operations.
In the process of simplification, some basic rules are needed to be used. The principle of BODMAS (B= Bracket, O = Of, D = Division, M = Multiplication, A = Addition, S = Subtraction)must be followed for solving the questions.
The equation is :
[tex]\frac{a^{2} - 16 }{ a^{2} - 25 }[/tex] ÷ [tex]\frac{a^{2} - 2a - 8}{a^{2} + 10a + 25}[/tex]
=[tex]\frac{a^{2} - 4^{2} }{a^{2} - 5^{2} }[/tex] ÷ [tex]\frac{a^{2} - 2a - 8}{a^{2} + 10a + 25}[/tex]
= [tex]\frac{ (a +4 ) ( a - 4 )}{ (a + 5) ( a - 5 )}[/tex] ÷ [tex]\frac{a^{2} - 4a + 2a - 8}{a^{2} + 5a + 5a + 25}[/tex] ( by applying middle term factor method)
(using [tex]a^{2} - b^{2}[/tex] formula )
= [tex]\frac{ (a+4) ( a-4 )}{(a +5 ) (a - 5)}[/tex] ÷ [tex]\frac{a(a -4) + 2 (a - 4)}{a (a + 5) + a (a + 5)}[/tex] ( by applying middle term factor method)
=[tex]\frac{( a + 4) ( a - 4)}{( a + 5) ( a - 5)}[/tex] ÷ [tex]\frac{(a + 2) ( a -4)}{( a +5) (a+5)}[/tex]
= [tex]\frac{( a +4)(a-4)}{(a + 5)(a - 5)\\}[/tex] * [tex]\frac{(a + 5) ( a + 5)}{(a + 2) ( a - 4)}[/tex]
=[tex]\frac{( a + 4) ( a + 5)}{(a + 2) ( a - 5)}[/tex]
so, the answer is - [tex]\frac{( a + 4 ) ( a +5) }{( a + 2) ( a - 5)}[/tex]
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Here is a number sequence.
31 26 21 16 11 ...
Write down the rule for continuing the sequence.
I don't need explanation, I only need the ANSWER
Answers
Answer: 11 16 21 26 31
Step-by-step explanation: the shows the sequence.
Michael buy a baket of mangoe on ale for \$ 4$4 before tax.
The ale tax i 12%.
What i the total price Michael pay for the baket of mangoe?
Answers
Total price paid by Michael for the basket of mangoes is $4.48.
For the calculation of total price, price of sales tax will be added with selling price. Forming the equation -
Total price = 4 + 12%×4
Calculating the percentage of sales tax on Right Hand Side of the equation
Total price = 4 + 12×4/100
Solving the percentage part on Right Hand Side of the equation
Total price = 4 + 0.48
Performing addition on Right Hand Side of the equation
Total price = $4.48
Hence, Michael has to pay $4.48 after addition of sales tax for the basket of mangoes.
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Learn more
What i 464 divided by 60 with a remainder?
(trying to figure out how many hour i 464 minute)
Answers
When we divide the 464 by 60 we get the following remainder in our answer that is 44.
What do math remainders mean?The Remainder is the name for the value that is left behind after division. If an amount (reward) cannot be divided completely with another number, we are left with only a meaning (divisor). The remaining is the name for this amount. For instance, 10 is not precisely divisible by 3. We can calculate 3 x 3 = 9 because that is the closest value.
Briefing :7.733333333333333
=7 44/60 ⇔ 7 R 44
464 divided by 60
=7 with a remainder of 44
Here, we provide you the outcome of the dividing with remainder, often known as the Euclidean division, along with a brief explanation of the following terms:
464 divide by 60 yields a quotient and residual of 7 R 44.
464 is the dividend & 60 is the divisor; the division (numeric division) of 464/60 is 7; the remainder ("left over") is 44.
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Customers of a certain credit card earn points for using the card. The table below shows the number of points earned for the amount spent.
Answers
Answer:
Step-by-step explanation:
18/2 = 9
36/4 = 9
72 / 8 = 9
each dollar spent appears to earn the same number of points
points / dollars = 9
points = 9 · dollars
dollars = points / 9
dollars = 81/9
dollars = 9
The following scores represent students’ test grades in Mr. Preisser's fashion class.
Test Scores
798883937988839379888393798883937988
What is the median score for Mr. Preisser's fashion class?
Answers
Answer:
Median: 85.5
Step-by-step explanation:
Knowledge Needed
Median is the middlemost value of the data set.
For example, we have a data set:
1, 7, 5
Line up in least to greatest.
1, 5, 7
Median is 5.
If there is an even amount of terms, the value of the median is the average of the 2 middlemost terms. For example:
1, 7, 16, 8
Line up in least to greatest.
1, 7, 8 , 16
(7 + 8)/2, average: 7.5
Median is 7.5
Question
Test Scores:
79 88 83 93 79 88 83 93 79 88 83 93 79 88 83 93 79 88
Line them up in least to greatest.
79 79 79 79 79 83 83 83 83 88 88 88 88 88 93 93 93 93
Middle of the set: 83 & 88 (Because there is an even amount of terms).
83 + 88 = 171
171/ 2= 85.5
Median: 85.5
0. 5*
Zach and Naomi are studying geometric transformations. Zach is able to
move the triangle A to A' using the following sequence of basic
transformations:
1. Reflection across the x-axis
2. Reflection across the y-axis
3. Translation two units to the right
864
y
A
2
ON 4
-8-6-4-20 24 68
-2-
Jö
6
-8-
A
X
Naomi claims that the same three transformations, done in any order will
always produce the same result. Zach disagrees. Who is correct?
Answers
Answer:
Zach is correct
Step-by-step explanation:
You want to know if reflection across the two axes and translation right will achieve the same effect if the transformations are done in any order.
TransformationsTranslation right adds a value to the x-coordinate.
Reflection over the y-axis changes the sign of the x-coordinate.
If the order of these two transformations is changed, the result will change.
Example
Consider point (0,0) and the translation right 1 unit.
Reflection, then translation: (0, 0) ⇒ (0, 0) ⇒ (1, 0)
Translation, then reflection: (0, 0) ⇒ (1, 0) ⇒ (-1, 0)
Zach is correct that the transformations ...
Reflection over the x-axisReflection over the y-axisTranslation 2 units rightcannot be done in any order.
Answer:
Zach
Step-by-step explanation:
PLEASE HELP- ALGEBRA 2
PICTURE WILL BE PROVIDED
Graph each system of inequalities. Name the coordinates of the vertices of
the feasible region. Find the maximum and minimum values of the given
function for this region.
Answers
Answer:
Step-by-step explanation:
We need to graph all the given constraints(inequalities). The intersection of the of all the graphed system of inequalities gives the vertices of the feasible region.
The first inequality is .
This is very simple to graph. It is the region bounded by the horizontal lines,
and .
The next constraint or inequality is
To graph this inequality, we need to graph the corresponding linear equation .
We plot the intercepts and .
We then draw a solid line through the points.
Next, we test the origin to determine which half plane to shade.
This statement is true so we shade the lower half plane.
We now graph the inequality,
To graph this inequality, we need to graph the corresponding linear equation .
We plot the intercepts and .
We then draw a solid line through the points.
Next, we test the origin to determine which half plane to shade.
This statement is true so we shade the lower half plane.
The feasible region is shown in the above diagram.
The vertices of the feasible region are;
We substitute the vertices into the objective function to obtain;
Therefore the maximum value is and it occurs at .
The minimum value is and it occurs a
ANSWER TO QUESTIONS 14 We need to graph all the - 1
10 Points! please help! There are 21 pieces of sports equipment at the gym. The ratio of volleyballs to handballs is 2 : 1 . How many volleyballs and handballs are at the gym?
Answers
Answer:
14 volleyballs and 7 handballs
Step-by-step explanation:
sum the parts of the ratio , 2 + 1 = 3 parts , then
21 ÷ 3 = 7 ← value of 1 part of the ratio , so
volleyballs = 2 × 7 = 14
handballs = 1 × 7 = 7
Answer:
Hey
volleyball = 14
Handball = 7
Step-by-step explanation:
21 pieces = 2:1n
step 1
Add the ratios together
21 = 3n
Step 2
divide both sides by 3
n = 21/3 = 7
where n = number of balls
volley ball = n × 2 = 7 × 2 = 14
handballs = n × 1 = 7 × 1 = 7
total = 21
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For the first 30 km, the bicyclist rode with a speed of v km/hour. For the remaining 17 km he rode with a speed which was 2 km/hour greater than his original speed. How much time did the bicyclist spend on the entire trip? Let t be the time (in hours), and find t in terms of v if v=15 and if v=18.
Answers
Answer:
t= 2.52 hours
Step-by-step explanation:
it is given that for first 30 km, the speed of bicyclist is v km/hour
time taken to cover first 30 km is given by
( )
for next 17 km the speed of bicyclist is 2 km/hour greater than his original speed
so the speed to cover next 17 km = v+2
time taken to cover next 17 km is given by
now total time t spent by the bicyclist to cover entire trip is given by
now if v=18 , we have
now to add fractions we make the denominator same
Hence we will find the LCM of 18 and 20
LCM of 18 and 20 = 180
now we need to make both the denominator equal to 180
hours (approx)
Hope it helps :) Make me as brainlest!
State if the two triangles are congruent based on the given information. If they are, state
how you know (SSS, SAS, ASA, or HL). (2pts each)
Answers
By SAS congruence, the triangles LMO and LNO are concurrent.
What is congruent triangles?If all three corresponding sides are equal and all three corresponding angles are equal in measure, two triangles are said to be congruent.If two sides and the included angle of one triangle are congruent with two sides and the included angle of another, the two triangles are congruent.Here given,
LM ≅ ON
∠ M ≅ ∠ N
From the figure it is clear that, the side LO is shared by both triangles.
So, in the concurrency SAS, two sides of a triangle are equal, and an angle is equal.
As a result, the triangles LMO and LNO are congruent by SAS congruence if LM ≅ ON, ∠ M ≅ ∠ N .
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I need help with particular type of psat math question . I'm really struggling pls help me.
Answers
Answer:
D. 80 trees-------------------------------------
For each tree you need 3 + 12 = 15 feet space.
On one side of the street you can plant:
600/15 = 40 treesSame number is applicable for the opposite side, so the total number is:
40*2 = 80 treesThe matching choice is D.
A supervisor keeps record about her team she worked out the value of sales each salesperson made this morning
Answers
The total value of the sales today is £1581 and the total value of the sales for each salesperson today is:
Mo = £330 + £247 = £577,
Daz = £180 + £259 = £439,
Colin = £300 + £265 = £565,
What are arithmetic operations?
Arithmetic operations is a branch of mathematics that studies numbers and the operations on numbers that are useful in all other branches of mathematics. It consists primarily of operations like addition, subtraction, multiplication, and division.
We have,
The value of sales each salesperson made this morning from the bar chart:
Mo = £330, Daz = £180, Colin = £300,
The value of sales each salesperson made this afternoon from the table given:
Mo = £247, Daz = £259, Colin = £265,
so, the total value of the sales today is :
= £330 + £180 + £300 + £247 + £259 + £265
= £1581.
also the total value of the sales for each salesperson today is:
Mo = £330 + £247 = £577,
Daz = £180 + £259 = £439,
Colin = £300 + £265 = £565,
Hence, the total value of the sales today is £1581 and the total value of the sales for each salesperson today is:
Mo = £330 + £247 = £577,
Daz = £180 + £259 = £439,
Colin = £300 + £265 = £565,
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the distribution of time spent brushing teeth for the 1,200 students in a school is multimodal with a mean of 43 seconds and a standard deviation of 8.99 seconds. if a random sample of 9 students is selected, is it appropriate to calculate the probability of the sample mean being less than 30 seconds using an approximately normal model?
Answers
No, it is not appropriate to estimate the probability using an approximately normal model because the population is not normal and the sample size is small.
The details given are,
Sample size = 9
mean = 43 sec
Standard deviation = 8.99
Therefore we conclude that is it not appropriate to calculate the likelihood of the sample mean being less than 30 seconds using an approximately normal model.
Mean is also know as the average of a given data . We calculate the mean by the formula : ∑xifi / ∑fi.
Normal Distribution is the probability density function ( pdf) for a continuous random variable in a system .
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work: solve the system of equations.
2) Xochitl is going to a carnival that has games and rides. Each game costs $2.50 and each ride
costs $5. Xochitl spent $30 altogether on 9 games and rides Graphically solve a system of
equations in order to determine the number of games Xochitl played and the number of
rides Xochitl went on, y.
Answers
6 games are played by Xochitl and 3 rides went on by Xochitl
What is Equation?Two or more expressions with an Equal sign is called as Equation.
Given that the Xochitl is going to a carnival that has games and rides
The cost of each game is $2.50 and cost of each ride is $5.
Xochitl spent $30 altogether on 9 games
Let x represents the number of games and y represents the number of rides.
By the given information we form two equations.
x+y=9...(1)
2.5x+5y=30...(2)
From equation (1)
x=9-y
Now plug in x value in (2)
2.5(9-y)+5y=30
22.5-2.5y=30
Subtract 22.5 on both sides
-2.5y=30-22.5
-2.5y=7.5
Divide both sides by 2.5
y=3
x+y=9
x+3=9
x=6
Hence, the number of games Xochitl played is 6 and the number of rides Xochitl went on is 3.
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Using the net below, find the surface area
of the triangular prism.
20 cm
9 cm
8cm
6 cm
9 cm
20 cm
Surface Area = [?] cm²
Answers
Answer:
Get math teacher
Step-by-step explanation:
go talk to them.
Meteorologists in Texas want to increase the amount of rain delivered by thunderheads by seeding the clouds. Without seeding, thunderheads produce, on average, 300 acrefeet. The meteorologists randomly selected 29 clouds which they seeded with silver iodide to test their theory that average acrefeet is more.
What conclusion can they reach based on the above output when they set the significance level to be 0.10?
a.The data does not provided statistical evidence that the average acrefeet from seeded clouds is more than 300.
b.The data does provide statistical evidence that the average acrefeet from seeded clouds is more than 300.
c.The data does not provided statistical evidence that the sample average acrefeet from seeded clouds is more than 300.
d.Two of the above are correct.
e.We can not draw conclusions based on the above statistical output because the conditions are not met due to the extreme out
Answers
The conditions are not met by the extreme outliers, hence we are unable to draw inferences based on the statistical output presented above. So, option e is correct.
What is meant by null hypothesis?
The null hypothesis, often known as H₀, is the assertion that there is no difference between two sets of data or variables under analysis, or that there is no relationship between them. Because there is no underlying causative relationship, the null hypothesis holds that any experimentally detected difference is merely the result of chance; therefore, the name "null."
We can create a z-test hypothesis by assuming that the amount of rain produced by thunderheads follows a distribution that is nearly normal:
300 acre feet is the null hypothesis for the average quantity of rain that thunderheads produce on their own without fertilizing the clouds.
Alternative Hypothesis: The amount of rain that thunderheads often produce by seeding the clouds is greater than 300 acre feet.
This test has a right tail.
So, The conditions are not met by the extreme outliers, hence we are unable to draw inferences based on the statistical output presented above.
So, option e is correct.
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PLEASE HELP MEE I DONT UNDERSTAND
Answers
So Valeria has 26 signatures as her starting point, and 6 signatures a day (x) as her rate. In slope-intercept (y = mx + b) form, this would be written y = 6x + 26, with y being the total number of signatures on x day.
Christina has 53 signatures as her starting point, and 3 signatures a day (x) as her rate. In slope-intercept (y = mx + b) form, this would be written y = 3x + 53, with y being the total number of signatures on x day.
To figure out how many days would it take to have the same amount of signatures, meaning the same y values, we have to set the equations equal to each other (bc each have the same y value as the other so they basically equal each other). That would mean:
6x + 26 = 3x + 53
To simplify this, get the numbers to one side and the xs to another by subtracting 3x and 26 from both sides. This would make it:
3x = 27, in which we can divide both sides by 3 to get x = 9. So the number of days after which they would have the same amount of signatures would be 9.
Now since we know the shared x value, we just plug it into one of the equations to get the resulting y value. I’ll pick Christina’s.
y = 6(9) + 26, which is 54 + 26, which is 80. So the number of signatures they both will have when they reach the same number is 80.
Hope this helps.
I need help on this question for part A and B
Answers
Answer:
PART A
x-intercept: (-7,0)
y-intercept: (0,9)
PART B
Answer is A (Top Left One)
Step-by-step explanation:
I left a desmos explanation on my previous answer
Quadrilateral ABCD is rotated 90° clockwise to produce A'B'C'D' Is each statement true?
AB=A'B'
If AC BD, then A'C' B'D'.
m2ABC
Yes No
000
PLEASE HELPP
Answers
Rotation of a shape is a type of transformation. The required answers are:
1. AB=A'B' (YES)
2. AC II BD, then A'C' II B'D' (YES)
3. m<ABC < m<A'B'C' (NO)
A quadrilateral is a family of shapes which have four sides. Examples are square, rectangle, rhombus etc.
Transformation is a process which can be used to change the orientation or dimensions of a given figure or shape called an object. Some types of transformation are: rotation, translation, reflection, and dilation.
Rotation implies turning an object at a certain angle in a specific direction. The direction could be either clockwise or counterclockwise.
NB: Rotating an object changes only its orientation, but not the length of its dimensions or angles.
So that the required answers to the questions are:
1. AB=A'B' (YES)
2. AC II BD, then A'C' II B'D' (YES)
3. m<ABC < m<A'B'C' (NO)
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At a restaurant, the bill comes to $70. If you decide to leave a 11% tip, how much is the tip? Give dollars and cents (like 1.23)
Answers
The tip is $7.70
what would be the coefficient of determination if the total sum of squares (sst) is 23.29 and the sum of squares due to regression (ssr) is 10.03?
Answers
The coefficient of determination if the total sum of squares is 23.29 and the sum of squares due to regression is 10.03 is 0.43
How to calculate regression?
The standard formula for simple linear regression is Y = mX + b, where Y is the response (dependent) variable, X is the predictor (independent) variable, m is the estimated slope, and b is the estimated intercept.
Here we need to find the coefficient determination if the total sum of squares (sst) is 23.29 and the sum of squares due to regression (ssr) is 10.03.
Here we know that the value of the following are given,
Sum of square = 23.29
Sum of regression = 10.03
Then the coefficient determination is calculated as,
The coefficient of determination r2 = SSR/SST.
When we apply the value, then we get,
=> 10.03/23.29
=> 0.43
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Please help me thank you
Answers
Step-by-step explanation:
3.1×10⁵ ÷ 5.4×10⁵
= (3.1/5.4) × 10^5-5
=0.5741 × 10⁰
= 5.7 × 10^-1
2. Name all angle pairs and what makes
them "special".
8
5
7
6
3
2
Answers
Answer:
1 & 3, 2 & 4, 5 & 7, and 6 & 8 are vertically opposite angles
4 & 8, 3 & 7, 1 & 5, and 2 & 6 are corresponding angles
4 & 6 and 3 & 5 are alternate angles
1 & 2, 2 & 3, 3 & 4, 1 & 4, 5 & 6, 6 & 7, 7 & 8, and 5 & 8 are supplementary angles
term to term rules: un+1=un^3+2
u0=-3
a)u1
b)u2
Answers
The first and the second terms of the recursive sequence are given as follows:
a) u(1) = -25.
b) u(2) = -15623.
How to solve the recursive sequence?The definition of the recursive sequence is presented as follows:
u(n + 1) = u(n)³ + 2.
The initial term is needed to solve the sequence, hence it is given as follows:
u(0) = -3.
Thus the term with index 1 is given as follows:
u(1) = u(0)³ + 2.
u(1) = -3³ + 2
u(1) = -27 + 2
u(1) = -25.
Considering the term with index 1, the term with index 2 is obtained as follows:
u(2) = u(1)³ + 2
u(2) = (-25)³ + 2
u(2) = -15623.
And then the same rule is obtained if needed to obtain the 3th, 4th terms, and so on, considering the previous term and the definition.
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What part of ton is a gram?
Answers
Answer:
1/1000000 One gram is one millionth of a ton
Step-by-step explanation:
1 ton is 1000 kg = 1 million grams
1 gram = 1/1000000 ton
Hope this helps
17. Louis is offered an interest rate of 6.35%
for an investment with continuous
compounding. What is his equivalent rate
of interest with simple compounding?
[A] 1.23 or 12.3%
[B] 0.0593 or 5.93%
[C] 0.423 or 42.3%
[D] 0.0656 or 6.56%
[E] 0.0615 or 6.15%
Answers
The rate of interest for simple compounding if Louis is offered an interest rate of 6.35% for an investment with continuous compounding, is 0.0656 or 6.56%, so option D is correct.
What is interest?When the loan is given to you, then some amount is charged to you for the principal amount and that is called interest.
Given:
Louis is offered an interest rate of 6.35% for an investment with continuous compounding,
Here, P will be the same, the amount will be the same and the time period will be the same then,
The amount in simple compounding = The amount in continuous compounding
[tex]P(1 + r)^t = Pe^{Rt}[/tex]
Here, r is the rate of interest for simple compounding,
[tex]1 + r = e^{0.0635}[/tex]
r = 1.0656 - 1
r = 0.06556
r = 0.0656
r = 6.56%
Thus, the rate of interest for simple compounding is 6.56%.
To know more about interest:
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