chapter 13 personal finance 1, 2 and 7

13-1 1. Calculating the Amount for an Emergency Fund. Beth and Bob Martin have total take-home pay of $4,600 a month. Their monthly expenses total $3.450. Calculate the minimum amount this couple needs to establish an emergency fund. How did you calculate this amount? 13-1 2. Determining Profit or Loss from an Investment. Two years ago, you purchased 220 shares of IBM stock for $124 a share. Today, you sold your IBM stock for $142 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares and dividends you might have received as a shareholder. a. What is the amount of profit you camed on each share of IBM stock? b. What is the total amount of profit for your IBM investment? LO13-2 b. Is the rate of return a positive or negative number? 7. Determining Interest. Assume that you purchased a corporate bond with a face value of $1.000. The interest rate is 4.20 percent. What is the dollar amount of annual interest you will receive each year? 8. Determining Interest. Three years ago you purchased a Kraft Heinz corporate bond that pays 4.498 percent annual interest. The face value of the bond is $1.000. What is the total dollar amount of interest that you received from your bond investment LO13-2