Question

Pierce wishes to purchase a municipal bond with a par value of 500 from councorporate bonds from dagofi radar are selling at 88.354, bonds from chambers translation are selling at 112.894, and bonds from essentia inc. are selling at 96.262. If Pierce wants to buy two bonds with a par value of 1,000 each from dagofi radar, five bonds with a par value of 500 each from chambers translation, and four bonds with a par value of 1,000 each from essentia inc., how much can he expect to spend?

1) 8,439.91
2) 8,500.00
3) 2,975.10
4) 9,343.97

Answer 1

Pierce can expect to spend a total of $1,126.226.

Step-by-step explanation:

To calculate the total amount Pierce can expect to spend, we need to multiply the number of bonds he wants to buy from each company by the selling price of each bond. From dagofi radar, he wants to buy two bonds with a par value of $1,000 each, so the total cost would be 2 * $88.354 = $176.708. From chambers translation, he wants to buy five bonds with a par value of $500 each, so the total cost would be 5 * $112.894 = $564.47. From essentia inc., he wants to buy four bonds with a par value of $1,000 each, so the total cost would be 4 * $96.262 = $385.048. Adding up these costs, the total amount Pierce can expect to spend is $176.708 + $564.47 + $385.048 = $1,126.226.