NYU Math Worksheet

Overview

1. In a certain population, heights (in inches) are normally distributed with a 𝜇 = 67 and 𝜎 = 3. Find the probability that a person selected at random has a height between 63 inches and 71 inches.
2. A bookstore determines that 2/5 of the people that come into the bookstore make a purchase. What is the approximate probability that of the 54 people who come into the bookstore during a certain hour, less than 14 make a purchase?
3. If you deposit $4500 at 5% annual interest compounded monthly, how much money will be in the account after 10 years?
4. A lottery winner is given two options:
   Option I: Receive a $20 million lump-sum payment.
   Option II: Receive 25 equal annual payments totaling $60 million, with the first payment occurring immediately. If you can earn money at 6% interest compounded annually during that long period, which option is better?
5. In a recent year, Ford was offering the choice of 1.9% loan for 36 months or $1000 cash back on the purchase of a $28,000 Taurus.

1. If you take the 1.9% loan offer, how much will your monthly payment be?
2. If you take the $1000 cash-back offer and can borrow money at your local bank at 6% interest compounded monthly for 3 years, how much will your monthly payment be?
3. Whichoptionismorefavorabletoyou?