Jen bought a house for 250000 and wishes to sell it in 5 years. If the inflations average 3% over 5 years, how much will she receive?
To calculate the final amount after inflation, we need to calculate the compounded amount.
First, we need to find the inflation rate for 5 years. The average inflation rate is given as 3%.
Secondly, we can use the formula for compound interest: Final amount = Principal amount * (1 + interest rate)^n,
where Principal amount is the initial price of the house, interest rate is the inflation rate, and n is the number of years.
Using the given information, the formula becomes: Final amount = 250000 * (1 + 0.03)^5.
Calculating this, we get: Final amount = 250000 * (1.03)^5 = 250000 * 1.1592741.
So, the final amount Jen will receive after 5 years, taking into account the average inflation rate of 3%, is $289,818.52.
The variance of a data is 64. If all scores of this data set are divided by 4, what is the new standard deviation?
The standard deviation is the square root of the variance. Therefore, if the variance is 64, the standard deviation is √64 = 8.
If we divide all the scores in the data set by 4, the standard deviation will also be divided by 4.
So, the new standard deviation after dividing all scores by 4 will be 8/4 = 2.
To calculate the amount Jen will receive after 5 years with an average inflation rate of 3%, we need to consider the value of the house in today's dollars and adjust it for inflation.
Step 1: Calculate the rate of inflation over 5 years.
The average inflation rate is 3%, so we can calculate the compounded growth rate using the formula:
(1 + inflation rate) ^ number of years
For 5 years at a 3% inflation rate:
(1 + 0.03) ^ 5 = 1.15
Step 2: Calculate the inflated value of the house.
Multiply the original price by the compounded growth rate calculated in step 1 to find the inflated value of the house after 5 years:
250000 * 1.15 = 287500
Thus, Jen will receive $287,500 for the house after 5 years.