Katherine Kocher has determined the following information about her own financia
ID: 2738379 • Letter: K
Question
Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $590 and her savings account is worth $1,200. She owns her own home that has a market value of $102,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,400. She has a car worth $11,000. She has recently purchased a 2-year certificate of deposit worth $5,300 and has a retirement account worth $41,000. What is the value of her investment assets?
$148,300
$26,400
$176,490
$46,300
$102,000
Katherine Kocher has determined the following information about her own financial situation. Her checking account is worth $590 and her savings account is worth $1,200. She owns her own home that has a market value of $102,000. She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,400. She has a car worth $11,000. She has recently purchased a 2-year certificate of deposit worth $5,300 and has a retirement account worth $41,000. What is the value of her investment assets?
$148,300
$26,400
$176,490
$46,300
$102,000
Explanation / Answer
Katherine Kocher 's Investment value $46,300 Refer below for detialed explanation An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth Particulars Type of asset Description Amount in $ Investment Value Checking Account Bank Account A checking account is a transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a checking account is very liquid, and can be withdrawn using checks, automated cash machines and electronic debits, among other methods. So this is not investment 590 NA Saving Account Bank Account A savings account is a deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Hence it does not qualify for investment. 1200 NA Home Fixed asset I assumed that home which was purchased is used by Katherine Kocher. 102000 NA Furniture and Applainces Fixed asset I assumed that Furniture and appliances which was purchased is used by Katherine Kocher. Hence it does not qualify as investment. 12000 NA Laptop and computer Fixed asset I assumed that home which was purchased is used by Katherine Kocher.Hence it does not qualify as investment. 3400 NA Cars Fixed asset I assumed that home which was purchased is used by Katherine Kocher. 11000 NA Deposit Investment a bank account that pays interest and is usually not able to be drawn on without notice or loss of interest. 5300 5300 Retirement account Investment An individual retirement account (IRA) is an investing tool used by individuals to earn and earmark funds for retirement savings. 41000 41000 46300
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