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A lottery winner plans to invest part of her $540,000 in utility bonds paying 20% per...
A lottery winner plans to invest part of her $540,000 in utility bonds paying 20% per year and the rest in a savings account paying 6% per year. How much should be allocated to each investment if the yearly income from utility bonds it to be $10,900 more than the income from the savings account?
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High School Teacher
Let winner invest $ x in utility bonds ,so $(540000-x) invested in saving.
annual income from utility bonds = `(xx20)/100=.2x `
annual income from saving =`((540000-x)xx6)/100` =`.06(540000-x)`
By given condition
Thus investment in utility bond= $166538.46
and in saving =540000-166538.46=$373461.54
Posted by aruv on July 11, 2013 at 3:30 AM (Answer #1)
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