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A bank grants mortgages to 87% of all applicants.After the applicant gets approval, the bank sends an appraiser to evaluate the value of the property.

A bank grants mortgages to 87% of all applicants.After the applicant gets approval, the bank sends an appraiser to evaluate the value of the property. The bank pays an appraiser a salary of $2000 a month plus $200 for each appraisal. Assume the bank gets 10 loan applications next month.

What is the variance of the amount of money the bank will have to pay its appraiser?

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