Ted owns a Lexus worth $44,100. He owns a home worth $275,000. He has a checking account with $740 in it and a savings accountwith $1,720 in it. He has a mutual fund worth $88,350. His personal assets are worth $103,650. He still owes $30,890 on his car and$149,600 on his home, and he has a balance on his credit card of $1,190. What is Ted's net worth?Net worth

Ted's total assets comprising of his car, home, bank balances, investments and personal assets is…

Answered: Ted owns a Lexus worth $44,100. He owns…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jeff and his girlfriend Amy want to go on a shopping spree for her birthday, however neither one of them had any money for this adventure. They both agreed that Jeff would go over to his father’s condo and take his credit card to fund this birthday celebration. Jeff went over to his father’s while his father was out, entered and took one of his credit cards. Once they obtained the card the first stop on this journey was to a local jewelry store where they bought a 15-carat diamond wing for her worth $5,000 and a diamond encrusted watch for him valued at $2,500 using the credit card. They then went to the coach store where they purchased a handbag and matching wallet for Amy for $4,500 using the credit card. They then had lunch where they spent $60 again paying for it with the credit card. They then went to a local liquor store where Jeff purchased two bottles of wine valued at $75 each. He paid for it with a personal check with the knowledge that he did not have sufficient funds in his…
A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 8% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $20,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $50,000, which he deposited in the same account. What is the current balance of the account (2021)?
This year, Major Healy paid $35,750 of interest on a mortgage on his home (he borrowed $715,000 to buy the residence in 2015; $815,000 original purchase price and value at purchase), $5,500 of interest on a $110,000 home equity loan on his home (loan proceeds were used to buy antique cars), and $8,250 of interest on a mortgage on his vacation home (borrowed $165,000 to purchase the home in 2010; home purchased for $412,500). Major Healy's AGI is $220,000. How much interest expense can Major Healy deduct as an itemized deduction? Interest Deductible
Ralph has two accounts with South Trust National Bank. Over the summer, he mows lawns and deposits his earnings weekly into his savings account. Ralph also eats out every day and uses the money in his checking account to pay for his meals. Besides these two transactions, he does not deposit or withdraw funds from either of these accounts.The amount in his savings account over time is represented in the table below. He spends$50 on food each week, and after three weeks, he has $1,600 in his checking account. Ralph Saving Account Weeks Total Amount 0 2 700 6 1100 12 1700 Part A How much money was in his saving account initially (at week zero)? Show how you determine your answer. Part B Create an equation to model Ralph’s savings account and create another equation to model Ralph’s checking account. After how many weeks will he have more money in his saving account?
Jenny's net worth increased from $600,000 to $750,000 this year. During the year, she inherited $50,000 in stocks and bonds. Jenny earned a salary of $80,000 and saved $10,000 of her salary in her 401(k) plan. Jenny contributed $3,000 to her IRA from her checking account. She also used $5,000 from her money market to purchase new bedroom furniture. Her investments grew by $75,000. Assuming these are all of her transactions, what was the principal reduction on her mortgage? $5,000 $10,000 $15,000 $20,000 $25,000
On Robin’s birthday, his grandmother gave him a ring that was worth $6,000 at the time of the gift. Robin’s grandmother had purchased the ring for $5,400. What is Robin’s basis in the ring if he sells it for $7,000? What if he sells it for $5,000? What if he sells it for $5,800? fill in the blank regardless of sales price
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Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2019 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
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Bill Petty, 56, just retired after 31 years of teaching. He is a husband and father of two children who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 per month from his retirement annuity. He has saved $150,000 in a 403(b) retirement plan and another $100,000 in other accounts. His 403(b) plan is invested in mutual funds, but most of his other investments are in bank accounts earning 2 or 3 percent annually. Bill has asked your advice in deciding where to invest his lump-sum bonus and other accounts now that he has retired. He also wants to know how much he can withdraw per month, considering he has two children and a non-working spouse. Because he has children, his current monthly expenses total $5,800. He is not eligible for Social Security until age 62 when he will draw approximately $1,200 per month; however, he would rather defer drawing on Social Security until age 67 to increase his monthly benefit amount to $1,550. 1. Bill has an…
The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $518,000 in a joint account with her husband, Ted. How much is not covered by FDIC insurance?

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