Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.5%, how much is the bond worth today?
A. $585.43
B. $614.70
C. $645.44
D. $677.71
E. $711.59
Answer: A
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A random sample of 64 SAT scores of students applying for merit scholarships showed an average of 1400 with a standard deviation of 240. If we want to provide a 95% confidence interval for the population mean SAT score, the degrees of freedom for reading the t value is
A. 60. B. 61. C. 62. D. 63.
Lucas orally agreesto sell hisMountain Spring Beverage Company to Natural Soft Drinks, Inc Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against
a. no one. b. Lucas and Natural Soft Drinks. c. Lucas. d. Natural Soft Drinks.
The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park. Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service. The average service time of both employees is 2 min to provide service. The arrival rate follows Poisson distribution, and the service time follows a negative exponential distribution. Determine the probability that an arriving customer will wait for service.
A. 16.67% B. 34.54% C. 12.32% D. 11.56%
A cash discount of 3/15, net 30 means that the buyer
A. makes a 3 percent down payment on the face value of the invoice within 15 days, with the remainder due in 30 days. B. gets a 3 percent discount off the face value of the invoice if the invoice is paid within 15 days. C. gets a 15 percent discount off the face value of the invoice if the invoice is paid within 3 days. D. gets a 3/15 (20 percent) discount if the invoice is paid within 30 days. E. None of these answers is correct.