1. Chris had $80,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (30 percent); bonds (50 percent) and cash equivalents (20 percent). His returns over the past 12 months were 6 percent on stocks, 3 percent on bounds and 1 percent on cash equivalents.

B) What is Chris's average return for the year?

A) Calculate the amount of stocks, bonds and cash equivalents in his portfolio today.

2. Marry wants to help pay for her grandchild's education. How many years will it take her to reach her goal of 30,000 if she invests 1,000 per year, earning 6 percent?

3. My husband and I estimate that we will need $50,000 in 18 years for the education of our new born daughter. assuming we can obtain a return of 4 percent, how much should we invest annually?