## How long will it take money to double if it is invested at 8​% compounded daily question mark 7.1 % compounded​ continuously?

How long will it take money to double if it is invested (a) at 8​% compounded daily? (b) at 7.1 % compounded​ continuously? Given information: Amount is doubled. It means if we invest \$x, then it becomes \$2x in some years. Formula for part A: We use compound interest formula. A= P(1+r/n)^(nt) Where “A” is […]

## Jim likes to day-trade on the Internet. On a good day, he averages a \$1100 gain. On a bad day , he averages a \$900 loss. Suppose that he has good days 25% of the time, bad days 35% of the time, the rest of the time he breaks even. a. What is the expected value of one day of Jim’s day-trading hobby ? b. If Jim day-trades every weekday for three weeks , how much money should he expect to win or lose?

Jim likes to day-trade on the Internet. On a good day, he averages a \$1100 gain. On a bad day , he averages a \$900 loss. Suppose that he has good days 25% of the time, bad days 35% of the time, the rest of the time he breaks even. a. What is the expected […]

## Suppose Best Buy offers an extended warranty for \$25 on an electronic device whose value is \$200. Suppose Best Buy estimates the probability the item will be returned for a claim on that warranty is 10%. Assume that if the item is returned, Best Buy will refund the \$200 purchase price. What is Best Buy’s expected value on the warranty?

Suppose Best Buy offers an extended warranty for \$25 on an electronic device whose value is \$200. Suppose Best Buy estimates the probability the item will be returned for a claim on that warranty is 10%. Assume that if the item is returned, Best Buy will refund the \$200 purchase price. What is Best Buy’s […]