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An investment portfolio is shown below.

\begin{tabular}{|l|l|l|}
\hline \multicolumn{1}{|c|}{Investment} & Amount Invested & ROR \\
\hline Savings Account & [tex]$\$[/tex] 8,400[tex]$ & $[/tex]3.6 \%[tex]$ \\
\hline Municipal Bond & $[/tex]\[tex]$ 3,200$[/tex] & [tex]$1.8 \%$[/tex] \\
\hline Preferred Stock & [tex]$\$[/tex] 5,625[tex]$ & $[/tex]13.6 \%[tex]$ \\
\hline Common Stock & $[/tex]\[tex]$ 575$[/tex] & [tex]$-1.2 \%$[/tex] \\
\hline
\end{tabular}

Using technology, calculate the weighted dollar amount of the savings account.

A. [tex]$\$[/tex] 225.67[tex]$
B. $[/tex]\[tex]$ 284.90$[/tex]
C. [tex]$\$[/tex] 302.40[tex]$
D. $[/tex]\[tex]$ 394.40$[/tex]



Answer :

GinnyAnswer
To determine the weighted dollar amount for the savings account in the given investment portfolio, here are the detailed steps:

1. Identify the amount invested in the savings account and its rate of return (ROR).
- Amount invested in the savings account: [tex]$8,400. - Rate of return for the savings account: 3.6%. 2. Convert the rate of return from a percentage to a decimal by dividing it by 100. - 3.6% = 3.6 / 100 = 0.036. 3. Calculate the weighted dollar amount by multiplying the amount invested by the rate of return. - Weighted dollar amount = Amount invested * Rate of return. - Weighted dollar amount = $[/tex]8,400 * 0.036.

4. Compute the result:
- Weighted dollar amount = [tex]$302.40. Therefore, the weighted dollar amount of the savings account is $[/tex]302.40, which matches the option:
[tex]\(\$ 302.40\)[/tex].

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