the interest charged on a $50,000, 60-day note payable, at the rate of 6%, would be

Answers

Answer 1

If the interest charged on a $50,000, 60-day note payable, at the rate of 6%, would be $500.

In the given question, we have to find the interest charged on a $50,000, 60-day note payable, at the rate of 6%.

The note payable = $50,000

Rate = 6% = 0.06

Period outstanding = 60

The total interest formula is a way to calculate the total simple interest on a sum of money over time at a specific interest rate.

Total Interest charged = Note Payable * rate * period outstanding

Total Interest charged = $50,000 * 0.06 * 60/360

Total Interest charged = $500

Hence, if the interest charged on a $50,000, 60-day note payable, at the rate of 6%, would be $500.

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Related Questions

What value of x is in the solution set of the inequality –2(3x 2) > –8x 6? –6 –5 5 6

Answers

The value of x in the solution set of the inequality: - 2(3x+2) > -8x + 6 is x>5.

- 2(3x+2) > -8x + 6

Let's solve the inequality by isolating the variable x.

or, - 6x -4 > -8x + 6

Add 4 on both sides

or, - 6x - 4 + 4 > -8x + 6 + 4

or, -6x > -8x + 10

Add 8x on both sides

or, -6x + 8x > -8x +8x +10

or, 2x > 10

Divide both sides by 2

or, 2x/2 > 10/2

0r, x > 5

Hence, the value of x in the solution set of - 2(3x+2) > -8x + 6 is x>5.

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The complete question is :

What value of x is in the solution set of the inequality -2(3x+2) > -8x + 6?

Answer:

5

Step-by-step explanation:

The sum of 30 and 40 by factoring out the greatest common factor

Answers

Answer:

To find the sum of 30 and 40 by factoring out the greatest common factor, first you need to find the greatest common factor (GCF) of both numbers. The GCF of 30 and 40 is 10. Then, you can divide both numbers by 10 to get 3 and 4 respectively. Finally, add the numbers together to get the sum of 7. Therefore, the sum of 30 and 40 by factoring out the greatest common factor is 7.

HII EASY MATH PUZZLE
please help!
Best answer get brainliest!

give the value of
1 GREEN SACK
1 RED SACK
ELF MASK
and
CHRISTMAS LIST

Answers

Answer:

Step-by-step explanation:

you get a tutor

" BRAINLY TUTOR "

press that link

Answer:

1 Green Sack = 2

1 Red Sack = 2

1 Elf Mask = 8

1 Christmas List = 5

Step-by-step explanation:

g=Green sack

r= Red sack

e = Elf mask

c = Christmas list

6g+6r=24Divide by 6, g+r=4Assuming that each sack is equal, both sacks equal 24+4*e=36Subtract 4 from both sides, 4*e=32Divide by 4, e=816*16+2c=266256+2c=266Subtract 256 from both sides, 2c=10Divide by 2, c=55+2(8)*8=?5+16*8=?5+128=?133

Find the equation of a line parallel to the line 2x + y -7 =0 and passing through the intersection of the lines x + y -4 = 0 and 2x – y = 8 .

With explanation
Can someone please help me

Answers

Answer:  y = 2x - 8.

Step-by-step explanation:

To find the equation of a line parallel to the given line, we need to find the slope of that line. The slope of the line 2x + y - 7 = 0, this can be found by taking the coefficient of the x term and the y term and dividing them. In this case, the slope is 2/1 = 2.

Now that we know the slope of the line we want to find, we can use the slope-intercept form of the line, y = mx + b, where m is the slope and b is the y-intercept (the point where the line crosses the y-axis). Since the line we are looking for is parallel to the given line, it will have the same slope, so we can use the same value for m.

The line x + y - 4 = 0 and 2x – y = 8 intersect at the point (4,0). We can use this point to find the value of b in the equation y = 2x + b. Substituting the values from the intersection point, we get 0 = 2(4) + b, which simplifies to b = -8.

Therefore, the equation of the line that is parallel to the given line and passes through the intersection of the two lines is y = 2x - 8.

if a stratified random sampling procedure is used, give one example of an effective variable on which to stratify in this survey. explain your reasoning.

Answers

The kids' judgments of the significance of excellent nutrition in the food given may vary based on the students' ages and, consequently, on school level, making this variable an useful one to stratify the survey on.

what is random sampling?

Each sample has an equal chance of being picked when using the random sampling sampling approach. It is intended that a sample picked at random will be a fair reflection of the entire population. Two different approaches to sampling exist: Random selection is a key component of probability sampling, which enables you to draw robust statistical conclusions about the entire group. Non-probability sampling incorporates non-random selection based on practicality or other factors, making it simple to gather data.

The student's degree of education is one potential stratification factor. Depending on the kids' ages and, thus, on their academic ability, the students' judgments of the significance of nutritious meals may vary. In contrast to middle school and high school pupils, elementary school children may place different values on the food that is offered.

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A point i reflected in the x-axi followed by the y-axi. The reflected point i (-3, "-4). " What i the original point?

Answers

When the original point is mirrored in the x-axis, it becomes (-3,4).

What is coordinate?

The horizontal and vertical distances from the two reference axes are used to define the location of a point on a coordinate plane. The x-value and y-value are often denoted as (x,y). To find the coordinates of a point in a coordinate system, do the inverse. Start at the point and trace a vertical line up or down to the x-axis. There you have your x-coordinate. Then repeat the process, but this time follow a horizontal line to determine the y-coordinate.

Here,

The reflected point= (-3,-4)

A point reflected in the x-axis followed by the y-axis,

=(-3,4)

The original point is (-3,4) when point reflected in the x-axis followed by the y-axis.

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a given exam has a normal distribution with a mean of 70 and a standard deviation of 10. a sample of size 25 is selected. what percentage of the time would you expect the mean of this sample size to fall below 66?

Answers

Answer:

we would expect the mean of the sample to fall below 66 about 5% of the time

Step-by-step explanation:

To answer this question, we can use the 68-95-99.7 rule, which states that in a normal distribution, approximately 68% of the values fall within one standard deviation of the mean, 95% fall within two standard deviations, and 99.7% fall within three standard deviations.

In this case, the mean of the sample is 70 and the standard deviation is 10, so the values that fall within one standard deviation of the mean are between 60 and 80. The values that fall below 66 are outside of this range, so we need to determine what percentage of the values fall within two standard deviations of the mean.

The values that fall within two standard deviations of the mean are between 50 and 90, so the percentage of values that fall below 66 is approximately (100 - 95) = 5%.

Therefore, we would expect the mean of the sample to fall below 66 about 5% of the time.

Evaluating Expressions with Exponents

What is the value of the expression 3^3 + 1 x 2

Answers

Answer:

29

Step-by-step explanation:

First, you will calculate 3 cubed, which is 27, and then multiply 1 and 2. That will result in 27+2 which will be 29

which of these is the only meaningful measure of the central location for a categorical variable? a. median b. mean c. mode d. variance

Answers

Variance is the only meaningful measure of the central location for a categorical variable.

Variance is the anticipated squared variation of a random variable from its population mean or sample mean in probability theory and statistics. Variance is a measure of dispersion, or how far apart from the mean a group of data is from one another.

Descriptive statistics, statistical inference, hypothesis testing, the goodness of fit, and Monte Carlo sampling are just a few of the concepts that make use of a variance. In the sciences, where statistical data analysis is widespread, a variance is a crucial tool.

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help me with this problem

Answers

Answer:

I x I > 6

Step-by-step explanation:

simplify the equation:
×[tex]\frac{(3xy^2)^3×(-4x^2y)}{(2x^2y^2)^2}[/tex]

by the way i dont know why the top has an A with a line on top it should be a multiplication sign; the second picture has what its supposed to like like clearly.

Answers

(3xy^2)^3×(-4x^2y)/(2x^2y^2)^2

= -108x^5y^7/4x^4y^4

= -108xy^3/4

Answer: -27xy^3

a chi-square test of independence is used to evaluate the relationship between two variables. if one variable is classified into 3 categories and the other variable is classified into 3 categories, what is the df for the chi-square statistic?

Answers

The df would equal in the chi-square statistic for this test is found as 4.

Define the term chi-square statistic?The discrepancy between the predicted and observed frequencies of the results of a group of events as well as variables is measured by the chi-square (X²) statistic. Chi-square is helpful in examining these variations in category variables, particularly ones that are nominal in character.

The formula for the chi-square (X²) statistic is;

(X²)  = ∑(O - E)²/E

For the given question-

The link between two variables is being assessed using the chi-square test for independence. Three categories are assigned to the given "A." The second "B" is divided into three categories.

The answer to the query is;

We would determine whether two qualities, A and B, under examination are independent or not using the chi-square test.

Taking that as a given, the null hypothesis H0: The two factors are unrelated.

Now, the degrees of freedom in the independence test using chi-square is,

v = (r-1) (s-1) (s-1).

r = 3 and s = 3.

The degree of freedom are;

ν =  (r-1) (s-1) = (3-1) (3-1) = 2×4

ν  = 4

Consequently, let test statistic be,

(X²)  = ∑(O - E)²/E

Consequently, df would equal in the chi-square statistic for this test is found as 4.

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For what values of a and b does √a + √b = √a+b?

Answers

Answer:

Isolate the radical, then raise each side of the equation to the power of its index a=0

Step-by-step explanation:

a + b is not identity

The latitude of any location on Earth is the angle formed by the two rays drawn from the center of Earth to the
location and to the equator. The ray through the location is the initial ray. Use 3960 miles as the radius of the Earth.
Suppose City A is due north of City B. Find the distance between City A (north latitude 45°28′ N) and City B (latitude
39°52' N).

Answers

The distance between City A (north latitude 45°28′ N) and City B (latitude 39°52' N) is 286 miles.

What is latitude?

Latitude is the measurement of distance north or south of the Equator. It is measured with 180 imaginary lines that form circles around Earth east-west, parallel to the Equator. These lines are known as parallels.

The measure of the central angel is 45°28' - 39°52' = 5.8'

8' = 8 ° / 60

   = 0.133333

θ = 4° + 0.133333

  = 4.133333° × [tex]\frac{\pi }{180}[/tex]

  = 4.133333° × 0.017453

  ≈ 0.072140 radian

now , θ  ≈ 0.072140 radian and r = 3960 miles

S  = θ r

   = 3960 × 0.072140

   ≈ 285.6744

S = 286 miles

Therefore, the distance between City A (north latitude 45°28′ N) and City B (latitude 39°52' N) is 286 miles.

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Identify the measure of angle EHF. Please show ur work Bc I have too !!!

Answers

Answer:

153°

Step-by-step explanation:

Angle EHG is a right angle, so it measures 90°.

The measures of angles EHF and FHG add to 90°.

m<EHF + m<FHG = 90°

m<FHG = 27°

m<EHF + 27° = 180°

m<EHF = 153°

Which value would complete the table to make the relationhip between the two quantitie proportional?

x 1 2 3 4 5
y 26. 8 53. 6 ? 107. 2 134

Answers

The value that would complete the table to make the relationship between the two quantity proportional is 4.

what is quantity proportional?

When two quantities are proportional, their relationship is constant for all values and as one quantity rises, the other rises as well.

A proportional relationship exists between two quantities if they can be written in the general form y = kx, where k is the proportionality constant. In other words, the ratio between these amounts never changes. In other words, no matter which pair of the two numbers you divide, you always obtain the same number k.

The value that would complete the table to make the relationship between the two quantity proportional is 4.

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£5200 is invested at 2.8% compound interest per annum.
How many years will it take for the investment to exceed £7000?

Answers

It will take 11 years for the investment to exceed £7000 if £5200 is invested over a year at a compound interest rate of 2.8%.

What is meant by compound interest?

The addition of interest to the principal of a loan or deposit is known as compound interest, sometimes known as interest on principal and interest. It occurs when interest is reinvested, added to the lent capital instead of being paid out, or the borrower is required to pay it, resulting in the next period's interest being generated on the principal amount plus any accumulated interest.

In contrast to simple interest, which does not compound since past interest is not added to the current period's principal, compound interest allows for the accumulation of interest from prior periods.

We solve this problem by using compound interest.

Given,

£5200 is invested over a year at a compound interest rate of 2.8%.

£7000. 1.028 = 5 200 x 5200 × 1.028¹¹ = 7045.76 2.

So, number of years=11

Therefore, It will take 11 years for the investment to exceed £7000.

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If m21 = 80°, then m22 is:
60°
80°
100°
None of these choices are correct.

Answers

Angle 1 = 80°
Angle 2 is equal to angle one bc they are alternate interior angles.

Angle 2 = 80°

find the exact length of the curve. y = ln 1 − x2 , 0 ≤ x ≤ 1 6

Answers

The exact length of the curve: y = ln 1 − x^2 , 0 ≤ x ≤ 1 6 will be[tex]$$\int \frac{d x}{a^2-x^2}=\frac{1}{2 a} \ln \left|\frac{a+x}{a-x}\right|+c$$[/tex]

[tex]$$\begin{aligned}y & =\ln \left(1-x^2\right), \quad 0 \leq x \leq \frac{1}{6} \\\frac{d y}{d x} & =\frac{1}{1-x^2} \cdot \frac{d}{d x}\left(1-x^2\right) \quad\left\{\frac{d}{d u} \ln u=\frac{1}{u}\right\} . \\& =\frac{-2 x}{1-x^2}\end{aligned}$$[/tex]

Now, the length of the curve is given by

[tex]$$\begin{aligned}L & =\int_a^b \sqrt{1+\left(\frac{d y}{d x}\right)^2} d x \\& =\int_0^{1 / 6} \sqrt{1+\left(\frac{-2 x}{\left.1-x^2\right)^2}\right.} d x \\& =\int_0^{1 / 6} \frac{\sqrt{\left(1-x^2\right)^2+4 x^2}}{\left(1-x^2\right)} d x \\& =\int_0^{1 / 6} \frac{\sqrt{1+x^4-2 x^2+4 x^2}}{\left(1-x^2\right)} d x\end{aligned}$$[/tex]

[tex]=\int_0^{1 / 6} \frac{\sqrt{1+x^4+2 x^2}}{1-x^2} d x\\\\=\int_0^{1 / 6} \frac{\sqrt{\left(1+x^2\right)^2}}{1-x^2} d x\\\\=\int_0^{1 / 6} \frac{1+x^2}{1-x^2} d x[/tex]

Now, since the degree of Numerator & degree of Denominator are the same,

So, we will perform a long division process

[tex]$$\begin{aligned}& \therefore \frac{1+x^2}{1-x^2}=-1+\frac{2}{1-x^2} \quad\left\{\begin{array}{l}1-x^2 \frac{-1}{\frac{x^2+1}{x^2+1}} \\\frac{2}{2}\end{array}\right. \\& \therefore L=\int_0^{1 / 6}\left(-1+\frac{2}{1-x^2}\right) d x \\&\end{aligned}$$[/tex]

[tex]$$\begin{aligned}& =\left[-x+2 \cdot \frac{1}{(271} \ln \left|\frac{1+x}{1-x}\right|\right]_0^{1 / 6} \\& =\left(-\frac{1}{6}+\ln \left|\frac{1+1 / 6}{1-1 / 6}\right|\right)-\left(0+\ln \left|\frac{1+0}{1-0}\right|\right) \\& =-\frac{1}{6}+\ln \left(\frac{7 / 6}{5 / 6} \cdot-(0+0)\right.\end{aligned}$$[/tex]

[tex]L=\frac{-1}{6}+\ln \left(\frac{7}{5}\right)\\[/tex]

L=0.1698 approximately 0.17 units

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How many different 9-letter strings can be made by rearranging the characters in the word "WISCONSIN"? O 9^6 O 9!/8 O C(9,6)O 9!O 9!/6

Answers

In the given word "WISCONSIN" there are exactly 9 letters, but some are repeated, so we can rearrage the letters in the word in 9!/8 ways.

What is permutation?

When the order of the arrangements counts, a permutation is a mathematical approach that establishes the total number of alternative arrangements in a collection. Choosing only a few items from a collection of options in a specific sequence is a common task in arithmetic problems. Permutations are commonly mistaken with combinations, a different mathematical concept. The sequence in which the components are selected does not, however, affect combinations. In other words, whereas ab and be are equivalent in combinations, they are deemed to be distinct arrangements in permutations.

What is the formula for calculating the permutation?

The formula for calculating the permutation is:

p(n,k) = n! /(n-k)!

where , n - Total number of elements in a set

             k - Number of selected elements

In the above question , the number of ways to rearrange 9 letters would be 9! but, since there are 2Ss , 2Ns and 2Is so the number of ways to rearrange 9-letter strings will be:

9!/(2!*2!*2!) = 9!/8

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Find all points of intersections of the graphs of the equation
p(x)=(2x+3)(x-5)

Answers

Answer:

The equation intersects the x or y axis a total ot three times:

(-1.5,0), (5,0), and (-15,0).

Step-by-step explanation:

I will assume that the "all points of intersection" refers to the intersection of the line with the x and y axes.  One can find those points by either a mathematical or graphing approach.

1)  Mathematical

    We and to find all points that have a zero for either the x or y coordinate:  (0,y) and (x,0)

(x,0):  Solve  p(x)=(2x+3)(x-5) for p(x) = 0:

  0=(2x+3)(x-5)

 (2x+3)=0 and (x-5)=0

 (2x+3)=0

2x=-3

x= - 1.5    (-1.5,0)

and

  (x-5)=0

X=5     (5,0)

The two points marking the intersection with the x axis are (-1.5,0) and (5,0).

--

(0,y):  Solve  p(x)=(2x+3)(x-5) for p(x)  for x=0:

p(x) = (2x+3)(x-5)

p(x) = (2*0+3)(0-5)

p(x) = (3)*(-5)

p(x) = -15       (-15,0)

The equation crosses the y axis at one point:  (-15,0).

2.  Graphing

See the attached graph.  The points of intersection can be located, as shown.  They match the values obtained mathematically, but a free graphing utility (DESMOS) makes graphing a pleasant chore.

In a series of transformations, which transformation would make two figures similar as opposed to congruent?

Answers

Dilation and rotation are the a series of transformations, which transformation would make two figures similar as opposed to congruent.

Rotations, reflections and translations are known as rigid transformations; this means they do not change the size or shape of a figure, they simply move it. These rigid transformations preserve congruence.

Rotations is defined as the motion of an object around a center or an axis.

Dilation, however, are not rigid transformations, since they change the size of a shape. Dilation would not change the shape, just the size; the angle measures would be the same, and the ratio of corresponding sides would be equal to the scale factor used in the dilation.

This transformation produces an image that is the same as the original shape. But there is a difference in the size of the shape. A dilation should either stretch or shrink the original shape.

This would give us a similar, but not congruent, figure.

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In a series of transformations, which transformation would make two figures similar as opposed to congruent?

A) Rotation and translation

B) Dilation and rotation

C) Reflection and rotation

D) Translation and reflection

Please help!!!
Find measure QR.

Answers

Answer:

  QR = 20

Step-by-step explanation:

You want the measure of side QR of isosceles triangle PQR with congruent sides PQ and QR marked 5x and 3x+8, respectively.

Congruent sides

The sides of the isosceles triangle are congruent, so we have ...

  PQ = QR

  5x = 3x +8

  2x = 8 . . . . . . . subtract 3x

  x = 4 . . . . . . . divide by 2

  QR = 3x +8 = 3(4) +8 = 20 . . . . . . find the length of QR

The measure of QR is 20 units.

__

Additional comment

You will recognize that the segment QS is both the altitude and median of the triangle. That means the triangle is isosceles, so symmetrical about QS.

If you need a formal proof, you can observe that QS is congruent to itself, so the two right triangles are congruent by LL (or SAS).

Raj combined white sand with black sand to make 1/4 pound mixture of sand. Raj then put an equal amount of this sand mixture into each of 5 vases. All of Raj's sand mixture went into the vases. How much sand was in each vase?

Answers

Answer:

1/20 pound of sand in each vase

Step-by-step explanation:

Raj made 1/4 and divided it into 5 vases.

1/4 ÷ 5

= 1/4 × 1/5

= 1/20

Each of the 5 vases had 1/20 lb. of sand.

*URGENT*

The sin(theta) = -2/5, and theta lies in quadrant IV. Find the exact values of the sine and cosine of 2theta.

Answers

Answer:

To find the exact values of the sine and cosine of 2 theta, we can use the trigonometric identities that relate these functions to the sine and cosine of theta.Since theta lies in quadrant IV, we know that the cosine of theta is negative. We can use the identity cos(theta) = sin(pi/2 - theta) to find the sine of theta:sin(theta) = sin(pi/2 - theta)

= -sin(theta)Solving this equation for sin(theta), we find that sin(theta) = -2/5.To find the cosine of 2 theta, we can use the identity cos(2 theta) = 1 - 2sin^2(theta):cos(2 theta) = 1 - 2sin^2(theta)

= 1 - 2(-2/5)^2

= 1 + 8/25

= 9/25To find the sine of 2 theta, we can use the identity sin(2 theta) = 2sin(theta)cos(theta):sin(2 theta) = 2sin(theta)cos(theta)

= 2(-2/5)(-cos(theta))

= 4/5cos(theta)Thus, the exact values of the sine and cosine of 2 theta are sin(2 theta) = 4/5cos(theta) and cos(2 theta) = 9/25.

Step-by-step explanation:

if the sum of tow digits is divided by the sum of the digits ,the quotientis 6 and the number is greater by 9 than the number formed by reversing the digits, find the number​

Answers

if the sum of two digits is divided by the sum of the digits, the number is  80.

What are digits?

Generally, Let the two digits of the number be x and y. The number can be written as 10x + y.

We are given that (x+y)/(x+y) = 6, which means that x + y = 6x + 6y.

Subtracting x + y from both sides, we get 5x = 5y. Therefore, x = y.

We are also given that the number is 9 greater than the number formed by reversing the digits, which means that 10x + y = 9 + 10y + x.

Combining like terms, we get 9x = 8y, or x = 8/9y.

Substituting this expression for x into the equation x = y, we get 8/9y = y, which means that y = 0.

Therefore, the number is 10x + y = 10 * (8/9y) + 0 = 80.

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NEED HELP!!! Similar triangles

Answers

Examining the triangles, the length of side QT is 2.5

What are similar triangles?

This is a term used in geometry to mean that the respective sides of the triangles are proportional and the corresponding angles of the triangles are congruent

Hence assuming the corresponding angles of the triangle are congruent then the side should be in proportions

The solution is worked out using sides SQ and QR, then ST and TU

(12 + QT) / 18 = 12 / 6(QT)

let QT = x

(12 + x) / 18 = 12 / 6x

cross multiplying

6x(12 + x) = 18 * 12

72x + 6x² = 216

6x² + 72x - 216

x = 2.5 OR -14.4

take the positive value x = 2.5

The length of QT is 2.5

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find the area of the region enclosed by the curves y = x and 4x + y2 = 12.

Answers

On integrating we will find that the area enclosed by the curves given is   64 / 3.

First we will plot a graph ,

The graph for x = y will be a straight line passing through the origin and the graph for  4x + y2 = 12 will be a parabola.

Integration of  4x + y2 = 12

= ∫4/2x² + y² dx = C

= 2x² + y² x - C

On putting the value of x and y we get ,

the area as 64 / 3.

In integration we generally add various parts to form one single object. It is a mathematical concept and comes under the branch of calculus.

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The picture below shows the Apollo spacecraft that took astronauts to the Moon in 1969. The spacecraft weighed 6.1 million pounds, and its motors produced 7.5 million pounds of thrust.



When the spacecraft returned to Earth, it slowed until a parachute could be opened for a landing at sea. Which of the following best explains how the spacecraft slowed down for a safe landing?
a
The parachute created a downward force to resist the downward force of gravity.
b
The parachute created an upward force to resist the upward force of gravity.
c
The parachute created an upward force to resist the downward force of gravity.
d
The parachute created a downward force to resist the upward force of gravity.

Answers

Since the spacecraft returned to planet Earth and slowed until a parachute could be opened for a landing at sea, a statement which best explains how the spacecraft slowed down for a safe landing is that: C. the parachute created an upward force to resist the downward force of gravity.

What is the force of gravity?

In Mathematics, the force of gravity is also referred to weight and it can be defined as the force that is acting on a physical object or body, especially due to the effect of gravity.

What is Newton's Third Law of Motion?

Newton's Third Law of Motion states that for every action there is an equal but opposite reaction. This ultimately implies that, in every interaction, there is a pair of forces acting on the two interacting objects such as between a spacecraft and a parachute.

In this context, we can reasonably infer and logically deduce that the parachute would create an upward force in order to resist the downward force of gravity that is acting on it, in accordance with Newton's Third Law of Motion.

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A bank i advertiing the following aving account
Calculate the AER on thi aving account

Answers

For an saving account in a bank, With the given value of the rate 'r' and the compounding period 'n' , The AER on the saving account is given by :

AER = [tex](1+\frac{r}{n})^{n} -1[/tex] .

What Is the Annual Equivalent Rate (AER)?

The interest rate on a savings account or investment product with multiple compounding periods is known as the annual equivalent rate (AER). The next interest payment will be based on the marginally higher account amount, and AER is computed under the presumption that any interest paid is included in the balance of the principle payment.

What are Advantages and Disadvantages of the AER?

The main benefit of AER is that it takes compounding effects into account, making it the real rate of interest.

Unfortunately, the AER is typically not mentioned when investors are comparing various investment possibilities. Investors are required to perform the calculations themselves.

n= compounding periods.

r= rate

Annual Equivalent Rate (AER) = [tex](1+\frac{r}{n})^{n} -1[/tex]

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