A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 one year ago
Khloe has a savings account that earns 3.13% compounded monthly. If she has $2,378 in the account today, what will the account balance be in 11 years?
$2,447.13
$2,452.43
$3,337.70
$3,353.86
anonymous
 one year ago
Khloe has a savings account that earns 3.13% compounded monthly. If she has $2,378 in the account today, what will the account balance be in 11 years? $2,447.13 $2,452.43 $3,337.70 $3,353.86

This Question is Closed

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0@jim_thompson5910 @phi

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Use FV = PV*(1+r/n)^(n*t) where FV = unknown PV = 2378 r = 0.0313 n = 12 (compounded 12 times a year) t = 11 years

phi
 one year ago
Best ResponseYou've already chosen the best response.0any luck? Jim wrote it out (like setting the dinner table. Now serve the dinner), that is put in the numbers. You will want to use a calculator.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Xavier deposits $6 daily into an interestbearing account to save for renovations to his bathroom. The account earns 4.57% which compounds annually. What is the present value of the investment if Xavier renovates his bathroom in five years? $11,785.32 $10,033.83 $7,843.83 $9,595.32 @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2are you familiar with annuities at all?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0But I am not sure whether to use PVOA or PVAD

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2PVOA = present value of ordinary annuity PVAD = present value of annuity due

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2they're basically the same but the annuity due is where the payment is made at the beginning of the period (eg: rent)

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Yeah I know what they are but I am not which one to use in this scneario

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2in this case, you use PVOA because the payment is made at the end of the period

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0So I am trying to figure out how would I plug in the values

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Because Xavier is depositing 6 dollars daily

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2hint: assume 365 days in a year (6 dollars per day) * (365 days per year) = 6*365 = 2190 dollars per year

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2if the payment frequency doesn't match with the compounding frequency, that is your first goal: to get them to line up somehow

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2so instead of thinking "6 dollars per day", think "2190 dollars per year" because the money is compounded annually

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0would that be then used as the C in the equation

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2yeah that's the cash flow C

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0then the interest rate would be 0.0457/12 right?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0and 12 would be n right?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2the /12 part is only if you compound montly

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2but we're actually compounding annually

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2what formula are you using again? can you draw it out?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0dw:1434671280661:dw

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2So in this case, C = 2190 is deposited every year i = r/1 = 0.0457/1 = 0.0457 n = 1 (compounding frequency) t = 5 years

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2\[\Large PVOA = C*\left(\frac{1}{i}  \frac{1}{i*(1+i)^{n*t}}\right)\] \[\Large PVOA = 2190*\left(\frac{1}{0.0457}  \frac{1}{0.0457*(1+0.0457)^{1*5}}\right)\] \[\Large PVOA = ???\]

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2I'm getting the same

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0here is another one Adrian and Eva received a mortgage for $245,350 on a house that cost $266,100. They purchased 3 discount points and 2 origination points. What is the cost for the discount and origination points? discount points: $4,907.00; origination points: $7,360.50 discount points: $5,322.00; origination points: $7,903.00 discount points: $7,360.50; origination points: $4,907.00 discount points: $7,903.00; origination points: $5,322.00

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Discount points (see attached) http://www.investopedia.com/terms/d/discountpoints.asp

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2origination points follow pretty much the same guideline http://www.investopedia.com/terms/o/originationpoints.asp

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0with that do i have to calculate what it is

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2yes you basically take 1% of the mortgage to get the cost of 1 point then multiply by 3 to get the cost of 3 points

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0which would let to my answer?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2yeah you'll get to the answer by following those steps

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Jeremiah invested $1,200 in a Certificate of Deposit, $3,500 in a corporate bond, $900 in a common stock, and $2,475 in a preferred stock, The COD has a rate of return of 2.1%; the corporate bond is –1.3%; the common stock’s rate of return is 4.1%; and the preferred stock has a rate of return of 5.5%. What is the weighted mean, mean and median overall rate of return on Jeremiah’s investment portfolio? Weighted Mean: 1.9%; Mean: 2.6%; Median: 3.1% Weighted Mean: 1.9%; Mean: 3.3%; Median: 3.1% Weighted Mean: 2.6%; Mean: 1.9%; Median; 2.1% Weighted Mean: 2.6%; Mean 2.6%; Median: 2.1%

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0I am completely lost on how to solve this one

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Ok this isn't too bad. The most work will be done with the weighted mean, so we'll put that off til last

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2to find the mean, you simply add up all the percentages and divide by 4 ignore the % signs

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0when i added all of the rates and divided by 4 i got 6.275

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.22.1+(1.3)+4.1+5.5 = 10.4 10.4/4 = 2.6

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2do you see how I got that?

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0ok so then from there we do what?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2so that's the mean rate of return 2.6%

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2to find the median rate of return, sort the rates of return from smallest to biggest 1.3, 2.1, 4.1, 5.5 I dropped the percent signs to make things easier

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2find the median of 1.3, 2.1, 4.1, 5.5

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0so i add them together and basically divide again @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2with the median, you will look for the middlemost number

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2if there are 2 numbers in the middle, add them up and divide by 2

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2yep 3.1 is the median

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2finally onto the weighted mean

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2first add up all of the dollar figures invested: 1200+3500+900+2475 = 8075 a total of $8075 was invested

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2what you do from here is multiply the portion invested as a fraction of the whole total investment by the rate of return example: for the Certificate of Deposit, (1200/8075)*2.1 = 0.31207430340558 another example: corporate bond (3500/8075)*(1.3) = 0.56346749226007 do this for the other investment types does that make sense?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2tell me what you get

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Certificate of Deposit, (1200/8075)*2.1 = 0.31207430340558 corporate bond (3500/8075)*(1.3) = 0.56346749226007 common stock (900/8075)*4.1 = 0.45696594427244 preferred stock (2475/8075)*5.5 = 1.68575851393189 did you get this?

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2now we add up the subresults 0.31207430340558+(0.56346749226007)+0.45696594427244+1.68575851393189 = 1.89133126934984

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.21.89133126934984 rounds to 1.9

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2So that's why the weighted mean is 1.9%

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0These next ones is just to check if the answer is correct @jim

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Faith wants to retire in 35 years. She makes annual contributions to a Roth IRA in the amount of $3,950. She is taxed at 35% today, but anticipates that will change to 25% in her retirement. If the average annual rate of return on the account is 6.3%, what is the net value of Faith’s IRA account when she retires? $305,053.33 $351,984.61 $420,925.32 $434,750.32

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Jake and Kate made a down payment of 16% on a house that cost $267,450. They are charged an origination fee of 0.5%, an intangible tax of 0.2%, and bought two discount points. What did Jake and Kate pay in total for the down payment, fees, taxes, and points? $43,947.38 $47,285.16 $48,857.77 $50,013.15< my response

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2the first one with faith is incorrect

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2you will use a FVOA formula then apply the 35% tax

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Paige made a down payment of 12% on a home she purchased for $403,450 and financed the rest. What is the total cost of intangible taxes if her state charges 0.2% for intangible taxes? $484.14 $710.07 $806.90 $968.28< my response

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0Fifteen years ago, Asher bought four different stocks at their lowest price of the day. He purchased 57 shares of McDoe’s at $78 per share; 78 shares of Younger, Inc. cost him $23 per share; 90 shares of Alfa Goods went for $86 per share; and 64 shares of Hooper, Rex, and Co. had a price of $69 per share. Today, he sold all of his shares in each company. He received $5,313 for McDoe’s, with annual dividends of $12 per year, $2,776 for Younger, Inc, $9,657 for Alfa Goods, and $6,701 for Hooper, Rex, and Co. On which investment did Asher receive the greatest rate of return? McDoe’s< my response Younger, Inc. Alfa Goods Hooper, Rex, and Co

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0are they wrong @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2I'm checking the Jake and Kate one

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Jake and Kate made a down payment of 16% on a house that cost $267,450. They are charged an origination fee of 0.5%, an intangible tax of 0.2%, and bought two discount points. What did Jake and Kate pay in total for the down payment, fees, taxes, and points? $43,947.38 $47,285.16 $48,857.77 $50,013.15   Mortgage Amount = (10.16)*267450 = 224658 Down Payment: 0.16*267450 = 42792 Origination Fee: 0.005*224658 = 1123.29 Intangible Tax: 0.002*224658 = 449.316 Discount Points: 2*0.01*224658 = 4493.16 Add up the results: 42792+1123.29+449.316+4493.16 = 48,857.766 = 48,857.77 So Jake and Kate paid a total of $48,857.77

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0and the other 2 @jim_thompson5910

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Paige made a down payment of 12% on a home she purchased for $403,450 and financed the rest. What is the total cost of intangible taxes if her state charges 0.2% for intangible taxes? $484.14 $710.07 $806.90 $968.28   Downpayment: 0.12*403450 = 48,414 Mortgaged Amount: 40345048414 = 355036 Intangible Taxes = 0.2% of mortgaged amount = 0.002*355036 = 710.072 = 710.07

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2still calculating that one

jim_thompson5910
 one year ago
Best ResponseYou've already chosen the best response.2Fifteen years ago, Asher bought four different stocks at their lowest price of the day. He purchased 57 shares of McDoe’s at $78 per share; 78 shares of Younger, Inc. cost him $23 per share; 90 shares of Alfa Goods went for $86 per share; and 64 shares of Hooper, Rex, and Co. had a price of $69 per share. Today, he sold all of his shares in each company. He received $5,313 for McDoe’s, with annual dividends of $12 per year, $2,776 for Younger, Inc, $9,657 for Alfa Goods, and $6,701 for Hooper, Rex, and Co. On which investment did Asher receive the greatest rate of return? McDoe’s Younger, Inc. Alfa Goods Hooper, Rex, and Co   McDoe’s: bought 57 shares at $78 a share, so paid a total of 57*78 = $4,446 sold them to get $5,313 plus 12*15 = 180 dollars in dividends rate of return = (total revenue  total cost)/(total cost) = (5313+180  4446)/4446 = 0.23549257759784 Younger, Inc. bought 78 shares at $23 a share, total cost = 78*23 = 1,794 got $2,776 for selling them rate of return = (total revenue  total cost)/(total cost) = (27761794)/1794 = 0.5473801560758 Alfa Goods: bought 90 shares at $86 a share > total cost = 90*86 = 7740 sold them for $9657 rate of return = (total revenue  total cost)/(total cost) = (96577740)/7740 = 0.24767441860466 Hooper, Rex, and Co. bought 64 shares at $69 a share: total cost = 64*69 = 4416 sold them for $6,701 rate of return = (total revenue  total cost)/(total cost) = (67014416)/4416 = 0.5174365942029  Summary of Rates of return McDoe’s: rate of return = 0.23549257759784 Younger, Inc. rate of return = 0.5473801560758 Alfa Goods: rate of return = 0.24767441860466 Hooper, Rex, and Co. rate of return = 0.5174365942029
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.