Pete is a first-year university student who is trying to understand his financial situation. He currently lives 3 miles away from campus. He works part time in a retail centre that pays him £900 per month. Pete has student loan to support his living and tuitions. The loan doesn’t require to be repaid until he finds his first full-time job. Pete wants to save £250 per month i.e. £3,000 per annum from the part time job. He transfers the £3,000 into his saving account at the end of every year.

a. As to the below Accommodation Expenses table published by the Students’ Union, the below students were randomly selected to help understand the weekly accommodation expenses and distance to campus. What’s the probability for Pete to spend less than £161 weekly on accommodation based on the information in the table? The table contains weekly data.

	Distance to Campus (miles) (Accommodation to Campus)
Amount spent, £	0.1 to 0.25	0.26 to 4.0	Over 4.0
Below 100	0	0	2
101 - 120	0	12	20
121 - 140	0	35	0
141 - 160	23	24	1
161 - 180	38	2	0
181 - 200	23	5	0
Above 200	5	0	0

b. How much is the frequency for students living over 4 miles away from the campus?

c. As to the category of Amount Spent, £, what is the modal group?

d. Assuming Pete is saving the same amount every year in the next 6 years. The time is April 01, 2020. How much will be the balance on Pete’s saving account on March 31, 2026, if his saving account pays simple interest rate 4% per annum and Pete always keeps the interest in his saving account?

e. Assuming Pete is saving the same amount every year in the next 6 years. The time is April 01, 2020. How much will be the balance on Pete’s saving account on March 31, 2026, if his saving account pays compounding interest rate 4% per annum and Pete always keeps the interest in his saving account?

Answer rating: 100% (QA)

a Based on the information in the table there are 20 students living over 4 miles away from campus w... View the full answer