1. A mutual fund is an investment that pools money from many investors and places the money in various investments, such as stocks and bonds. Mutual funds have been in the news because of the current economic recession and because of people like Bernie Madoff. He claimed to be earning his clients 12-15% each year on their investments but really stole over 50 billion dollars from them! Thankfully Madoff is an exception and Group problems most fund managers car their multi-million dollar salaries by carefully investing clients in existence for over 45 years. In 1997, the net assets of the Fidelity Magellan Fund were $51.243 billion, in the hands of manager Robert E. Stansky. He served as manager from 1996 to 2005. During that time Stansky managed to return a total of 238% for the fund. In 2001, the net assets of the fund were $80.190 billion. Stansky was replaced by Harry Lange in 2005, who shifted investing strategies for the fund. What might the fund have been worth when Lange took over? If Lange's management style led the Fidelity Magellan to continue to grow at the same rate as it did under Stansky's management, what will be the net worth of this fund this year? Understanding the problem by paraphrasing the question(s), identifying and organizing the information, stating any necessary assumptions, and making an estimate (a) Identify the question(s) or task(s) in the word problem and paraphrase below: (b) Identify the important information and organize that information in a table (c) This word problem includes an assumption that a linear equation is appropriate to solve the problem. Identify the wording of that assumption and write it below: (d) Extend the table from part (b) using a linear pattern (additive) and then use this extended table to estimate the answer(s) to the question(s) from part (a) . Devising a plan by defining variables, drawing diagrams or pictures, and make a statement about how you will answer the question(s) (e) Clearly define the variables that will be used to answer the question(s) in part (a) (1) Complete the following plan to solve the problem: Step 1: find a linear equation Step 2: substitute for the variable to find Implementing the plan by following your plan and self-assess your progress to make any needed revisions to your plan (g) Find an algebraic model (equation) for the information in your table from part (b) (h) Use your model (equation) to find the precise answer to the question from part(a) Answering the question(s) and reviewing your work by writing a complete sentence using proper numbers and units that directly answers the question(s), checking your work is error-free, and checking that your answer is reasonable (1) Write your answer in a complete sentence using the correct numbers and units 6) Check your work for errors and also compare your estimated answer in part (d) to your precise answer in part (h). Is your precise answer reasonable? 41 1. A mutual fund is an investment that pools money from many investors and places the money in various investments, such as stocks and bonds. Mutual funds have been in the news because of the current economic recession and because of people like Bernie Madoff. He claimed to be earning his clients 12-15% each year on their investments but really stole over 50 billion dollars from them! Thankfully Madoff is an exception and Group problems most fund managers car their multi-million dollar salaries by carefully investing clients in existence for over 45 years. In 1997, the net assets of the Fidelity Magellan Fund were $51.243 billion, in the hands of manager Robert E. Stansky. He served as manager from 1996 to 2005. During that time Stansky managed to return a total of 238% for the fund. In 2001, the net assets of the fund were $80.190 billion. Stansky was replaced by Harry Lange in 2005, who shifted investing strategies for the fund. What might the fund have been worth when Lange took over? If Lange's management style led the Fidelity Magellan to continue to grow at the same rate as it did under Stansky's management, what will be the net worth of this fund this year? Understanding the problem by paraphrasing the question(s), identifying and organizing the information, stating any necessary assumptions, and making an estimate (a) Identify the question(s) or task(s) in the word problem and paraphrase below: (b) Identify the important information and organize that information in a table (c) This word problem includes an assumption that a linear equation is appropriate to solve the problem. Identify the wording of that assumption and write it below: (d) Extend the table from part (b) using a linear pattern (additive) and then use this extended table to estimate the answer(s) to the question(s) from part (a) . Devising a plan by defining variables, drawing diagrams or pictures, and make a statement about how you will answer the question(s) (e) Clearly define the variables that will be used to answer the question(s) in part (a) (1) Complete the following plan to solve the problem: Step 1: find a linear equation Step 2: substitute for the variable to find Implementing the plan by following your plan and self-assess your progress to make any needed revisions to your plan (g) Find an algebraic model (equation) for the information in your table from part (b) (h) Use your model (equation) to find the precise answer to the question from part(a) Answering the question(s) and reviewing your work by writing a complete sentence using proper numbers and units that directly answers the question(s), checking your work is error-free, and checking that your answer is reasonable (1) Write your answer in a complete sentence using the correct numbers and units 6) Check your work for errors and also compare your estimated answer in part (d) to your precise answer in part (h). Is your precise answer reasonable? 41