Can someone please check this?

- anonymous

Can someone please check this?

- Stacey Warren - Expert brainly.com

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- schrodinger

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- anonymous

@jim_thompson5910

##### 1 Attachment

- anonymous

sure

- anonymous

Gimee a sec ima look over it

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## More answers

- anonymous

Everything looks fine
I'm not sure how to solve 21 tho

- anonymous

@jim_thompson5910 how would i correct number 2

- jim_thompson5910

what is the total sum (in dollars) invested in portfolio 1

- anonymous

not sure

- jim_thompson5910

add up the dollar figures in column 1 (where it says portfolio 1)

- anonymous

9250

- jim_thompson5910

good

- jim_thompson5910

now multiply each ROR value by the dollar amount in the same row
focus on just portfolio 1 for now

- jim_thompson5910

once you get done multiplying, add up those results and tell me what you get

- anonymous

i dont understand do i have to multiply every single ror with the total sum

- jim_thompson5910

ex: multiply -0.004 with 2400 to get -9.60

- jim_thompson5910

convert each percentage to decimal form

- anonymous

got them

- anonymous

i got -9.60,40.82,313.96, -35,and 102.12

- anonymous

@jim_thompson5910

- jim_thompson5910

add those up to get ???

- anonymous

412.3

- anonymous

????

- anonymous

@jim_thompson5910

- jim_thompson5910

finally, divide that by 9250 (the sum of the dollar figures)

- jim_thompson5910

does that make sense?

- anonymous

yes

- anonymous

and i got 0.044572973

- jim_thompson5910

very good

- jim_thompson5910

that's the weighted ROR for portfolio 1

- jim_thompson5910

do the same for portfolio 2 and 3

- anonymous

ok are the other questions bad by the way like are they alot wrong

- jim_thompson5910

3 and 4 are wrong

- jim_thompson5910

I'm on 5 now

- anonymous

ok

- jim_thompson5910

tell me what you get for the other weighted ROR's

- anonymous

ok

- anonymous

Is the order portfolio 3,2,1 @jim_thompson5910

- jim_thompson5910

what weighted RORs did you get

- anonymous

for portfolio 2 i got 0.048797251
and for the portfolio i got 0.087759517

- jim_thompson5910

very nice

- jim_thompson5910

so yeah it's 3, 2, 1

- jim_thompson5910

3 being the best
1 being the worst

- anonymous

how do i fix 3,4?

- jim_thompson5910

let's do them one at a time

- jim_thompson5910

go here
http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
type in the given mortgage amount, rate, and time

- jim_thompson5910

then scroll to June 2025, which is exactly 10 years into the future
what is the value in the last column?

- jim_thompson5910

why 10 years? because of the "10" in "30/10" means that the balloon payment hits after 10 years are up
the 30 means this is a 30 year fixed mortgage

- anonymous

168,401.44?

- jim_thompson5910

good

- jim_thompson5910

that remaining balance is the balloon payment
you either pay it all or refinance it

- anonymous

ok

- anonymous

4?

- jim_thompson5910

Formula
\[\Large FV = \frac{(1+i)^n - 1}{i}\]
FV = unknown
i = 0.0635/12 = 0.03175
n = 2*7 = 14

- anonymous

ok

- anonymous

I get 17.29035 @jim_thompson5910

- jim_thompson5910

way too small

- jim_thompson5910

oh my bad, I left out P

- jim_thompson5910

that's my fault lol

- anonymous

its ok @jim_thompson5910

- jim_thompson5910

\[\Large FV = P*\frac{(1+i)^n - 1}{i}\]
FV = unknown
P = 720*6 = 4320
i = 0.0635/12 = 0.03175
n = 2*7 = 14

- anonymous

74694.34

- anonymous

i had it right lol

- jim_thompson5910

yeah I'm realizing that just now lol

- jim_thompson5910

sorry about that

- anonymous

its ok. but i probably had more when you continued to look into it @jim_thompson5910

- anonymous

any more that i had wrong that i need to look into ?

- jim_thompson5910

5 is correct

- jim_thompson5910

I'm still on 6

- anonymous

how is going @jim_thompson5910

- jim_thompson5910

nearly there, I'm on the origination fee now

- jim_thompson5910

I'm making up a spreadsheet

- anonymous

how is it going? @jim_thompson5910

- jim_thompson5910

I keep trying various combinations, but I'm not getting any of the answer choices

- anonymous

really?

- anonymous

http://openstudy.com/study#/updates/5487f558e4b0337e71f8b3c8 @jim_thompson5910

- jim_thompson5910

I vaguely remember that, but I don't remember actually calculating out the answer

- jim_thompson5910

let me think

- jim_thompson5910

ok I'm only off by about 20 cents at this point, so it's good enough

- anonymous

its ok #7

- jim_thompson5910

let me think about how to answer 6

- jim_thompson5910

the answer isn't B, unless I forgot something

- jim_thompson5910

do you have a breakdown of each subtotal?

- anonymous

nope

- anonymous

@jim_thompson5910

- jim_thompson5910

I'm getting this
21956+307080+1776.44+1332.33+1397.2+621.95+12685.08+355.288 = 347,204.288

- jim_thompson5910

did you get that?

- jim_thompson5910

or something similar to it?

- anonymous

i got b at first but i guess

- anonymous

at least if that at the beginning @jim_thompson5910

- jim_thompson5910

hmm I'm not sure now, but I think I have the right answer. I'm only off by 20 cents or so. This problem is a pain

- anonymous

how about the rest how are they @jim_thompson5910

- jim_thompson5910

7 looks good

- anonymous

8?

- anonymous

@jim_thompson5910

- jim_thompson5910

still thinking

- jim_thompson5910

do you have the bond rate of return formula?

- anonymous

I believe it is yield = coupon amount/price

- jim_thompson5910

that seems too small

- jim_thompson5910

is there anywhere in your notes that mentions the bond rate of return formula?

- anonymous

Divide the future value that you seek in a bond by the bond's face value.For example, if you seek a future value of $15,000 from a $5,000 bond, divide $15,000 by $5,000 to get a multiplier of 3.
Step 2
Divide 1 by the term of the bond. For example, if you seek the future value of $15,000 after 20 years, divide 1 by 20 to get 0.05.
Step 3
Raise the multiplier to the power of this factor. Continuing the example, raise 3 to the power of 0.05 to get 1.056.
Step 4
Subtract 1 from the result, to get 0.056.
Step 5
Multiply the answer by 100. With this example, this gives a target annual rate of return of 5.6 percent.

- jim_thompson5910

the issue is that we don't know what future value we want to target

- anonymous

yeah right?

- jim_thompson5910

what would that future value be?

- anonymous

i am not sure?

- jim_thompson5910

same here, i guess it's just best to skip

- jim_thompson5910

question 9 is incorrect

- jim_thompson5910

the gov bond is the most secure, so it is the less riskiest

- anonymous

so it would be municipal common stock preferred @jim_thompson5910

- jim_thompson5910

the municipal bond is the safest

- anonymous

whats the second best common stock?

- jim_thompson5910

the one that isn't under investigation

- anonymous

got it @jim_thompson5910 10?

- anonymous

i used the compound interest formula for 10

- jim_thompson5910

10 is correct

- anonymous

11? @jim_thompson5910

- jim_thompson5910

still working on it

- jim_thompson5910

hmm I'm getting $660.71 which is too small I think. Let me try again

- jim_thompson5910

ok I redid it and got $759.69 which is practically $759.70 like you got
so it looks good

- jim_thompson5910

question 12 looks good too

- anonymous

13?

- anonymous

question 13 is bound to be wrong @jim_thompson5910

- jim_thompson5910

not sure yet

- jim_thompson5910

13 is correct

- anonymous

14 and 15?

- anonymous

15 was kind of hard for me @jim_thompson5910

- jim_thompson5910

14 is incorrect

- anonymous

how do i fix it? @jim_thompson5910

- jim_thompson5910

\[\Large M = \frac{L*i}{1-(1+i)^{-n}}\]
M = unknown
L = 375500
i = 0.04325/12
n = 12*20
find M

- anonymous

3209.255?

- jim_thompson5910

try again

- anonymous

2340.27

- jim_thompson5910

better

- anonymous

thanks how is 15?

- anonymous

@jim_thompson5910

- jim_thompson5910

15 looks good

- anonymous

16 and 17?

- anonymous

@jim_thompson5910

- jim_thompson5910

still thinking on 16

- jim_thompson5910

16 is correct as well

- anonymous

how is it @jim_thompson5910

- jim_thompson5910

does your lesson give any formulas about prorated taxes? I'm trying to figure out what the start date is

- anonymous

i dont think so

- anonymous

i have checked

- jim_thompson5910

these problems frustrate me because I get so very close but not quite there exactly. I'm off by a few dollars

- anonymous

what did you get?

- anonymous

@jim_thompson5910

- jim_thompson5910

one sec

- jim_thompson5910

Ok I'm getting that she has to pay 1717.78 in taxes and 900.24 in interest
Total:
1717.78 + 900.24 = 2,618.02
which is about a dollar off from choice A. So I could be missing something, but idk

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