Investments The Barkers want to retire in 10 years and buy a home in the Southwest. They

Chapter 2, Problem 41

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Investments The Barkers want to retire in 10 years and buy a home in the Southwest. They have $40,000 to invest over that period and plan to use their returns together with their initial investment and the profit on the sale of their existing home toward this purchase. As their financial consultant, you recommend they invest in mutual funds that had the following average returns per annum over the past 10 years as of December 31, 2009: some money in Franklin Strategic Income at 6%, some money in Franklin Small Cap Value that yielded 8%, and some money in Franklin Micro Cap Value that yielded 10%. Prepare a table showing the various ways this couple can achieve the following goals: (a) They want $2500 per year in income. (b) They want $3000 per year in income. (c) They want $3500 per year in income. Source: Franklin Funds