HELP! percent problem?
I cant figure this one out.. i dont know the equation or how to solve the equation.. here is the problemu own 500,000 in an ira when you retire. i own the option to invest the money into 2 funds, fund A pays 5.2% Fund B 7.7% both annually. how should you divide your money between fund A and fund B to produce annual interest income of 34,000
if someone could grant me the equation and explain how the steps in answering it i would really appreicate it.. appreciation
Answers: two simultaneous equations (8th grade algebra)
you want X*5.2% + Y*7.7% = 34000/500000
and you want X+Y=100%
.052X + .077Y = .068
X + Y = 1
multiply second equation by -.052 to draw from rid of X part
.052X + .077Y = .068
-.052X - .052Y = -.052
presently add the two equations vertically
0X +.025Y = .016 hence Y = .64
and by sunstitution into X+Y=1 you get X =.36
so you want .36*500000 surrounded by fund A and .64*500000 in fund B
The answer is $100,000 contained by fund A and $400,000 in fund B. I solved the problem using algebra. Using the facts, we come up beside the following equations:
A=the amount of money that should be invested in fund A
B=the amount of money that should be invested within fund B
A+B=$500,000 (the total available when you retire)
5.2%(A) + 7.2%(B)=$34,000
Since A+B=$500,000, we know that B=$500,000-A
When we subsitute B with the above equation, we get hold of
5.2%(A) + 7.2%(500,000-A)=$34,000
5.2%(A) + $36,000 - 7.2%A=$34,000
-2%A + $36,000=$34,000
-2%A =-$2,000
A=$100,000
Since A+B =$500,000, we know B=$400,000
you would want to invest 320,000 at 7.7% and 180,000 at 5.2% to get a abandon of exactly 34,000. I know there's probably a formula, but I just simulated the interrogate on a spreadsheet and quit when the answer came out right.
Does anyone know anything in the order of investing contained by REIT's?
I don't know anything about stocks, and I realize that the genuine estate market is crap right immediately, but would it be a good time to buy near the prices possibly being lower? Any abet out there on this subject contained by general would be great!!Thanks :)
Answers: Reits would get a good postscript to a well thought out "asset allocation". REITs would be around 5-10% of a typical allocation.
As far as buying in a minute because the prices are "so low". When does one catch a falling run through?
Best bet: Take a year or two and learn investing (not that not easy, just take time). Don't ever (ever) take specific suggestions from strangers (you don't know their testimonial or motives)...........
Here's a site that answers a lot of cross-question about REITs
http://www.investinreits.com/learn/faq.c...
Remember those can reservoir as well. You might want to favor commercial REITs at this time, but that alone is not a guarantee the stock will carry out well for you. ALL investments are risks--study the holdings, its history, etc. earlier investing.
How one can know that it is the right time to invest the money on shares?
Answers: Well the answer is simple. If you are going for quick bucks its your choice no market expert would help you on which share to invest and which shares to sell. Because many times exactly the opposite happens. If you are looking for an investment option for six months or an year i can give you an idea about when to invest in shares.\
First thing is wait and observe the market. Find companies with strong track record. Strong track record mean financially strong, dividend wise strong and in public opinion etc
Ideal time to invest would be wait for the market to crash. When the price of the shares with strong track record falls they are temporary so buy it when the price is low wait for some time to make some healthy profit
for more information you can refer to
http://www.indiasharemarket4u.blogspot.c...
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Basic thing is when the price is low. You can see 52 weeks low and high. If its near to low buy it.
You have to see the company profile,their future plans, Asset,Growth,Profit, Money providers to them.
Current status of market trend. Any major problems hit like Dollar price down,recession,Govt change,Budjet declarations
Sector trend say Bank,Foods,..etc..
And finally still things are unpredictable!!
I can tell you for a FACT that it's impossible to call the market... I day traded for years and I only hit the absolute bottom ONCE... but it paid off over $100,000