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Investing in Bonds A woman wishes to invest $
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EBK ALGEBRA AND TRIGONOMETRY
- What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?arrow_forwardThree students have each saved $1000. Each has an investment opportunity in which he or she can invest up to $2000. Here are the rates of return on the students’ investment projects: Harry 5 percent Ron 8 percent Hermione 20 percent If borrowing and lending are prohibited, so each student can use only personal saving to finance his or her own investment project, how much will each student have a year later when the project pays its return? Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a borrower or lender in this market? Among these three students, what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent? At 10 percent? At what interest rate would the loanable funds market among these three students be in equilibrium? At this interest rate, which student(s)…arrow_forwardBilly-Sean O'Hagan is the treasurer at his college fraternity, which recently earned $15,350 in its annual carwash fundraiser. Billy-Sean decided to invest all the proceeds in the purchase of three computer stocks: HAL, POM, and WELL. Price per Share ($) Dividend Yield (%) HAL 100 0.5 POM 20 1.50 WELL 25 0 If the investment was expected to earn $74 in annual dividends and he purchased a total of 230 shares, how many shares of each stock did he purchase? i have x+y+z=230 100x+20y+25z=15,350 5x+30y=74 i get y=31 but its incorrect, help pleasearrow_forward
- 1-Joy invests a total of $13,500 in two accounts. The first account earned a rate of return of 13% (after a year). However, the second account suffered a 2% loss in the same time period. At the end of one year, the total amount of money gained was $930.00. How much was invested into each account? was invested in the account that gained 13% and$ was invested in the account that lost 2%. 2-The Nutty Professor sells cashews for $7.40 per pound and Brazil nuts for $4.30 per pound. How much of each type should be used to make a 46 pound mixture that sells for $5.98 per pound?Round answers to the nearest pound. pounds of cashews pounds of Brazil nuts 3-Taylor invests $7000 in two different accounts. The first account paid 8 %, the second account paid 14 % in interest. At the end of the first year he had earned $632 in interest. How much was in each account?$ at 8 %$ at 14 % 4- If 95 people attend a concert and tickets for adults cost $2.5 while tickets for children cost $1.5 and…arrow_forwardIn a certain company, employees contribute to a welfare fund at the rate of 4% of the first $1000 earned, 3% of the next $1000, 2% of the next $1000 and 1% of any extra monies. How much will an employee who earned $20,000 contribute to the fund?arrow_forwardrefer to image below.arrow_forward
- Your grandmother needs your help. She has $50,000 to invest. Part of this money is to be invested in noninsured bonds paying 15% annual interest. The rest of this money is to be invested in a government-insured certificate of deposit paying 7% annual interest. She requires $6000 per year in extra income from the combination of these investments. How much money should be placed in each investment?arrow_forwardA building company plans to build a new warehouse. The cost of building the warehouse is an initial investment of 1500 thousand dollars, together with a further 250 thousand dollars at the end of each of the next two quarters. The building company will need to cover quarterly operating cost of 120 thousand dollars at the end of each of the next two quarters (first and second). After completion of the construction by the end of the second quarter, the warehouse will be sold for 2.5 million dollars. Assuming that the annual interest rate is 4% compounded annually, find: (1) The present value of the building costs; (2) The present value of the operating costs; (3) The present value of the revenue; and (4) The internal rate of return of the project. (5) Do you think the company should carry out this project? Give your reason(s).arrow_forward1 102 F Partly sunny Devon invested $7500 in three different mutual funds. A fund containing large cap stocks made a 5.4% return in 1 yr. A real estate fund lost 13.2% in 1 yr, and a bond fund made 4.2% in 1 yr. The amount invested in the large cap stock fund was three times the amount invested in the real estate fund. If Devon had a net return of $108 across all investments, how much did he invest in each fund? Devon invested S in the large cap fund, S Check 14 f5 16 4- in the real estate fund, and S Q Search f7 ♫+ fa 00 s b fg 144 liji in the bond fund. f10 DII fi Save For Later Submit Assig © 2023 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | A DDI X 112 5 deletearrow_forward
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