Question

Can someone please check this?

Answer 1

@jim_thompson5910

Answer 2

sure

Answer 3

Gimee a sec ima look over it

Answer 4

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

Answer 5

@jim_thompson5910 how would i correct number 2

Answer 6

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

Answer 7

not sure

Answer 8

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

Answer 9

9250

Answer 10

good

Answer 11

now multiply each ROR value by the dollar amount in the same row

focus on just portfolio 1 for now

Answer 12

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

Answer 13

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

Answer 14

ex: multiply -0.004 with 2400 to get -9.60

Answer 15

convert each percentage to decimal form

Answer 16

got them

Answer 17

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

Answer 18

@jim_thompson5910

Answer 19

add those up to get ???

Answer 20

412.3

Answer 21

????

Answer 22

@jim_thompson5910

Answer 23

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

Answer 24

does that make sense?

Answer 25

yes

Answer 26

and i got 0.044572973

Answer 27

very good

Answer 28

that's the weighted ROR for portfolio 1

Answer 29

do the same for portfolio 2 and 3

Answer 30

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

Answer 31

3 and 4 are wrong

Answer 32

I'm on 5 now

Answer 33

ok

Answer 34

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

Answer 35

ok

Answer 36

Is the order portfolio 3,2,1 @jim_thompson5910

Answer 37

what weighted RORs did you get

Answer 38

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

Answer 39

very nice

Answer 40

so yeah it's 3, 2, 1

Answer 41

3 being the best
1 being the worst

Answer 42

how do i fix 3,4?

Answer 43

let's do them one at a time

Answer 44

go here

http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

type in the given mortgage amount, rate, and time

Answer 45

then scroll to June 2025, which is exactly 10 years into the future

what is the value in the last column?

Answer 46

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

Answer 47

168,401.44?

Answer 48

good

Answer 49

that remaining balance is the balloon payment

you either pay it all or refinance it

Answer 50

ok

Answer 51

4?

Answer 52

Formula

\[\Large FV = \frac{(1+i)^n - 1}{i}\]

FV = unknown
i = 0.0635/12 = 0.03175
n = 2*7 = 14

Answer 53

ok

Answer 54

I get 17.29035 @jim_thompson5910

Answer 55

way too small

Answer 56

oh my bad, I left out P

Answer 57

that's my fault lol

Answer 58

its ok @jim_thompson5910

Answer 59

\[\Large FV = P*\frac{(1+i)^n - 1}{i}\]

FV = unknown
P = 720*6 = 4320
i = 0.0635/12 = 0.03175
n = 2*7 = 14

Answer 60

74694.34

Answer 61

i had it right lol

Answer 62

yeah I'm realizing that just now lol

Answer 63

sorry about that

Answer 64

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

Answer 65

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

Answer 66

5 is correct

Answer 67

I'm still on 6

Answer 68

how is going @jim_thompson5910

Answer 69

nearly there, I'm on the origination fee now

Answer 70

I'm making up a spreadsheet

Answer 71

how is it going? @jim_thompson5910

Answer 72

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

Answer 73

really?

Answer 74

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

Answer 75

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

Answer 76

let me think

Answer 77

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

Answer 78

its ok #7

Answer 79

let me think about how to answer 6

Answer 80

the answer isn't B, unless I forgot something

Answer 81

do you have a breakdown of each subtotal?

Answer 82

nope

Answer 83

@jim_thompson5910

Answer 84

I'm getting this

21956+307080+1776.44+1332.33+1397.2+621.95+12685.08+355.288 = 347,204.288

Answer 85

did you get that?

Answer 86

or something similar to it?

Answer 87

i got b at first but i guess

Answer 88

at least if that at the beginning @jim_thompson5910

Answer 89

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

Answer 90

how about the rest how are they @jim_thompson5910

Answer 91

7 looks good

Answer 92

8?

Answer 93

@jim_thompson5910

Answer 94

still thinking

Answer 95

do you have the bond rate of return formula?

Answer 96

I believe it is yield = coupon amount/price