Can someone please help me with this question it have been up here for 5 days...
ID: 437341 • Letter: C
Question
Can someone please help me with this question it have been up here for 5 days.....Using a preadsheet program or a calculator, solve Tracy's problem of how often to go to the ATM when the nominal interst rate on her bank account is 10%, she need $30 each day,it cost her .50 cents each time she use the ATM and she thinks that there is a 15% chance that she will lose her cash or have it solen. under these conditions, how often does Tracy go to the ATM, and how much cash does she take out each time?
Report Abuse
Explanation / Answer
the question is a bit funny. the 10% is useless as one doesnt know her amount in the bank.
but presuming she goes every day to get the 30 bucks she needs.
she needs 30+0.5=30.5 every time because of the atm costs.
However she gets robbed 15% of the time, which means she goes 1.18 times a day on average. Note that when she is robbed, she can stil be robbed again that day.
100=0.85x 100/0.85=118 Thus when is wants 100 times cash she goes 118 times.