Evaluating Mutual Fund Options Elena is divorced and has two daughters, ages five and six. Her ex-husband is paying $100 per child per week in child support. Because the kids are in school full time, Elena has returned to work as a high school math teacher; she earns sufficient income to support the family. Elena has decided to put the child support money in a college fund for the girls. For the past year, she’s been depositing the money in a savings account that earns only 3 percent annual interest, and she’s accumulated $10,600. She realizes that she needs to invest this money to earn a better return.

1. What is Elena’s specific investment goal?

2. What types of mutual funds might be appropriate to meet Elena’s goal? Explain.