A lottery winner plans to invest part of her $1,880,000 in utility bonds paying 13% per year and the rest in savings account paying 6% per year. How much should be allocated to each investment if the yearly income from the savings account is to be twice the income from the utility bonds?
1 Answer | Add Yours
Let the amount of money invested by the lottery winner in the utility bonds be x.
Then amount of money invested in savings account= (1,880,000-x).
Yearly income from utility bonds=`13/100*x=(13x)/100`
Yearly income from savings account=`6/100*(1,880,000-x)`
According to the given condition:
Therefore, amount of money invested by the lottery winner in the utility bonds =$352,500.
Amount of money invested in savings account= $(1,880,000-x)
We’ve answered 317,742 questions. We can answer yours, too.Ask a question