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You are asked to invest trust funds of $200,000. The three available investments are currently yielding 5%, 6% and 7%. The stated investment goal is

You are asked to invest trust funds of $200,000. The three available investments are currently yielding 5%, 6% and 7%. The stated investment goal is to achieve annual earnings of $12,000 from the investments and you are required to invest in each of the three available investments in order to spread the risks. (a) Formulate the given constraints as a set of linear equations and write the associated augmented matrix. Perform matrix operations on the augmented matrix to determine the initial value of each of the three investments. Hint: Like Question 2 there is not a unique solution and you must introduce an arbitrary real number. (b) What is is the range of possible values for the arbitrary real number?

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