Question

An investment portfolio is shown below. investment amount invested ror savings account $2,700 3.6% municipal bond $3,600 1.8% preferred stock $765 13.6% common stock a $1,155 −1.2% using technology, calculate the weighted dollar amount of the savings account. $64.80 $97.20 $104.04 $108.96

Answer 1

To find the weighted dollar amount of the savings account, one uses the formula for simple interest based on the principal of $2,700 and a rate of return (ROR) of 3.6%. The calculated interest is $97.20.

Step-by-step explanation:

To calculate the weighted dollar amount of the savings account, we need to consider the amount invested in the savings account and the rate of return (ROR). We can use the formula for simple interest because the problem doesn't specify compounding:

Principal + (Principal × Rate × Time).

Assuming the time is one year, the calculation for the savings account would be:

$2,700 + ($2,700 × 0.036 × 1) = $2,797.20

The interest earned on the savings account is therefore $97.20, which is the difference between the final amount and the principal.

Answer 2

The weighted dollar amount of the savings account with a balance of $2,700 and a rate of return of 3.6% is $97.20.

Step-by-step explanation:

The question involves calculating the weighted dollar amount of the savings account. To do this, we will apply the concept of weighted return, using the formula Principal + (principal × rate of return). The savings account has a balance of $2,700 and an interest rate of 3.6%. Applying the formula, we have $2,700 + ($2,700 × 0.036) which equals $2,797.20. To find the weighted dollar amount, we then subtract the original principal from this total, yielding $97.20.