How do you solve this question of mathematics (finite math)?
A lottery winner plans to invest part of its 1.055 million dollars in utility bonds paying 16% per year and the remainder in a savings account paying 5% annually. How much should you allocate to each investment if the annual income of the two investments will be the same? Please show method to solve, since there are several problems that need to complete the setting in this way. Thanks!
Let x = amount invested at 16%. Income x 16% = 0.16 remaining money, (1.055 million – x), invests 5% of income 5% = 0.05 (1.055 million – x) The income of the two investments are the same .. 16x = 0.05 (1.055 million – x) = 5.275 million 16x – 21x = 5x = 251,190.48 251,190.48 5.275 million x 16% = 40190.48 (1.055 million to 251,190.48) at 5% = 40,190.48 (803,809.52) 5% = 40,190.48