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Robert has $15,000 to invest in a combination of stocks, mutual funds and CDs. The rate of return on the combination of stocks he
Robert has $15,000 to invest in a combination of stocks, mutual funds and CDs. The rate of return on the combination of stocks he is considering in the past has been 10% annually while the rate of return on the combination of mutual funds that he is considering has been 15%. If Robert invests in CDs he can expect to receive a 2% rate of return. Robert has decided that he will constrain himself to invest twice as much in mutual funds as the total of the stocks and CDs combined. Robert's Financial Adviser has informed him that he can expect to have $16,840 in his portfolio at the end of the year. How much did Robert invest each in stocks, mutual funds and CDs. 1) Set up a System of Equations that represents the financial situation of Robert above. 2) Write an Augmented Matrix that represents the System of Equations in #1. 3) Solve the Augmented Matrix.
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