33. Mutual Funds and College Tultion Bill and Colleen recently inherited $50,000. They plan to invest the money in order to pay for their son Timmy's tuition. They anticipate they will need an average annual return of $6000 in order to protect their capital and have enough to cover the tuition (based on the average 2010- 2011 tuition for a 4-year public college). They will invest in four mutual funds with the following average annual returns over the 5-year period prior to December 31, 2009, rounded to the nearest whole percent: John Hancock Large Cap Equity Growth at 9%,T Rowe Price Emerging Markets at 13%, Templeton China World Fund at 14%, and TCW Small Cap Growth at 7%. (a) Write a system of equations that describes Bill and Colleen's financial needs and restrictions. Be sure to name all variables. (b) Solve the system by writing its augmented matrix in reduced row echelon form. (c) Prepare a table showing various investment options. .(d) What investment advice would you give to Bill and Colleen? Source: collegeboard.com 40. Investments Three couples wish to invest monies that would earn an average of $1800 per annum for a period of 5 years to finance their dream trip to Europe. As their financial consultant, you recommended they invest in certain mutual funds based on their performance over the past 5 years as of December 31,2009: some money in Global Discovery at 6%, some money in Templeton Global Bond that yielded 8%, and some money in Franklin Natural Resource that yielded 10%. Prepare a table for each couple showing the various ways their goal can be achieved (a) If the first couple has $20,000 to invest (b) If the second couple has $25,000 to invest (c) If the third couple has $30,000 to invest