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George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund
George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%. 1. Spreadsheet Model with Solver setup 2% 2. User Interface (be sure to set Object Properties as appropriate) 2%| 3. VBA Code to link Model and Interface 2% 4. VBA Code for Formatting 2% 5. VBA Code for Error Trapping 2% Let B = percentage of funds invested in the bond fund S = percentage of funds invested in the stock fund Max 0.060 B+ 0.100 S Sat 1B IV 0.060 B + 0.100 S 1B + = B.S 0.300 Bond fund minimum 0.075 Minimum return 1 Percentage requirement 0
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