To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him. Introduction: Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Perform the task below. Suppose you have savings in the bank that you want to invest in stocks and bonds instead of setting up in a new business. Write one to two paragraphs discussing what method you can use to make the investment and explain the reasons for your decision.

Please refer to the image attached below to answer the following question: B) Could you please calculate the inheritance tax liability if Liz dies and she has a will where she transfers everything to her husband?

You have just purchased a new warehouse. To finance thepurchase, you’ve arranged for a 30-year mortgage for 80 percent of the $4,500,000purchase price. The monthly payment on this loan will be $27,500. What is the APRon this loan? The EAR?

Answer 2

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 6

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 7

Chapter 19, Problem 1CT

Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Answer 12

Ch. 19.2 - Prob. 1TP Ch. 19.2 - Prob. 2TP Ch. 19.3 - Prob. 19.3AQ Ch. 19.3 - Prob. 4TP Ch. 19.3 - Prob. 5TP Ch. 19.4 - Prob. 6TP Ch. 19.4 - Prob. 7TP Ch. 19.4 - Prob. 8TP Ch. 19.4 - Prob. 9TP Ch. 19.5 - Prob. 1MED

Solution Summary: The author explains how an individual should invest in financial schemes, property, stocks, or property with the expectation of achieving a return on it.

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions