The Great Outdoors is having a sale on their road bikes. The store is also offering financing to those who qualify. The road bike
that you are interested in is a Bianrekmondiant that is on sale for $2,199. The sales associate informs you that the closed-end
installment loan offered by the store is a 36 month installment plan with monthly payments of $82.83. Determine the finance
charge (interest) of the installment loan.
a. $780.32
c. $782.88
b. $790.10
d. $728.23

b

step-by-step explanation:

$3,200 x 7.25% = $3,200 x .0725 = $232 interest monthly

$232 monthly x 12 annual = $2, 784

step-by-step explanation:

irst, find the z score of a score of 80. this is given by the formula z = (x-u)/o, where x is the score, u is the mean, and o is the standard deviation. this gives

z = (80-78)/12 = 1/6 = .1667

now, find what percentile a z score of 1/6 correlates to in the normal distribution.

a z score of 1/6 = .1667 is equivalent to the 56.36th percentile of the distribution. so the probability a score is over this is 1-.5636 = .4364

the mean of a sample mean is equal to the original mean. however, the standard deviation of a sample mean is equal to the original standard deviation divided by the square root of n (sample size). so the new standard deviation is 12/sqrt(16) = 3.

the new z score is 80-78/3 = 2/3 = .667. this is equivalent to the 74.86th percentile. so the probability that the mean will be greater than this score is 1-.7486 = .2514.