Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Edmonds Community College's (EDCC) scholarship fund received a gift of $ 115,000.
The money is invested in stocks, bonds, and CDs.
CDs pay 2.5% interest, bonds pay 4.8% interest, and stocks pay 7.3% simple interest.
EDCC invests $ 40,000 more in bonds than in CDs.
If the annual income from the investments is $5,935 , how much was invested in each vehicle?
solve by the method of your choice either using reduced row echelon form or the matrix equation
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- c.) Bank A has three types of assets: Debenture ($90,000), Mortgage ($75,000), and Loan to the Government ($2000). The bank has Tier 1 capital of $15,000 and Tier 2 capital of $20,000. Calculate Capital adequacy ratio. If the capital adequacy requirement ratio is 8%, does the bank meet the requirement?arrow_forwardEdmonds Community College's (EDCC) scholarship fund received a gift of $325,000. The money is invested in stocks, bonds, and CDs. CDs pay 2.5% interest, bonds pay 2.9% interest, and stocks pay 7.8% simple interest. To spread the risk the College has a policy of having 4 times as much money in CDs as in stocks and bonds combined. If the annual income from the investments is $9,365 , how much was invested in each vehicle? solve by the method of your choice either using reduced row echelon form or the matrix equation EDCC invested $ in stocks ___________________ $ in bonds ___________________ $ in CDs ___________________arrow_forwardA college scholarship fund received a gift of $ 156,469.08.The money is invested in CDs, bonds, and Stocks.CDs pay 4.25% interest, bonds pay 5.5% interest, and stocks pay 6.8% simple interest.ACM invests $ 51,181.71 more in bonds than in CDs. If the annual income from the investments is $9,331.00 , how much was invested in each vehicle?arrow_forward
- Scenario Sinking funds are used to provide money to pay off a loan in one lump sum or to accumulate money to build new factories, buy equipment, and so on. The payment needed at the end of each period to accumulate a fixed amount in a sinking fund at a specific future date is found as follows. Answer the following question and explain your steps toward the solution: A business needs $450,000 in five years. How much should be deposited each quarter in a sinking fund that earns 9% compounded quarterly to have this amount in five years?arrow_forwardThe University is given a gift of $500000 for the construction of a School of Management building. The University invests the gift into an account for future use. The University receives 8.00% on the money for 7 years then the rate drops to 6.40%. If the building is constructed 23 years after the gift was received, how much is in the fund at that time? S Do not use dollar signs or commas in your answer. Include two decimals. in your answer.arrow_forwardRed Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-annually. After 2 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly.arrow_forward
- Country Day's scholarship fund receives a gift of $ 135000. The money is invested in stocks, bonds, and CDs. CDs pay 3 % interest, bonds pay 2.4 % interest, and stocks pay 11.8 % interest. Country day invests $ 25000 more in bonds than in CDs. If the annual income from the investments is $ 10850 , how much was invested in each vehicle?arrow_forwardVijayarrow_forwardMaricopa's Success scholarship fund receives a gift of $ 115000. The money is invested in stocks, bonds, and CDs. CDs pay 5.75 % interest, bonds pay 5.7 % interest, and stocks pay 8.9 % interest. Maricopa Success invests $ 35000 more in bonds than in CDs. If the annual income from the investments is $ 7845 , how much was invested in each account? Maricopa Success invested $ in stocks. Maricopa Success invested $ in bonds. Maricopa Success invested $ in CDs. Question Help: D Video Submit Questionarrow_forward
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