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?
1 Answer | Add Yours
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
We’ve answered 327,869 questions. We can answer yours, too.Ask a question