An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (1)
Calculate the dollar amount of the municipal bond by multiplying the amount invested in the municipal bond by its rate of return (ROR).
Dollar amount of municipal bond = Amount Invested * ROR
Dollar amount of municipal bond = $3,700 * 3.2% = $3,700 * 0.032
The weighted dollar amount of the municipal bond is $118.40 .
Explanation
Understanding the Problem We are given an investment portfolio that includes a municipal bond with an amount invested of $3,700 and a rate of return (ROR) of 3.2%. We need to calculate the weighted dollar amount of the municipal bond, which is the dollar amount earned from this investment.
Setting up the Calculation To calculate the weighted dollar amount, we multiply the amount invested by the rate of return. In this case, we have:
Amount Invested = $3,700 Rate of Return = 3.2% = 0.032
Weighted Dollar Amount = Amount Invested × Rate of Return
Performing the Calculation Now, we perform the calculation:
Weighted Dollar Amount = $3,700 × 0.032
The result of the operation is $118.40.
Final Answer The weighted dollar amount of the municipal bond is $118.40. Therefore, the correct answer is $118.40.
Examples
Understanding weighted returns is crucial in finance. For instance, if you're managing a portfolio for retirement, knowing the return from each investment helps you assess overall performance. Suppose you invest in stocks, bonds, and real estate. Calculating the weighted return from each asset class allows you to see which investments are contributing most to your portfolio's growth and adjust your strategy accordingly. This ensures a balanced and effective approach to wealth accumulation.
