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?
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)