Elottery winner who is going to invest in utility bonds and a savings account using the following data: assume that her total winnings are $ 7, that the utility bonds will pay 3 percent per year, and that the savings account will pay 2 percent per year. how much should she allocate to each investme?

How much should she allocate to each investme?

420000 in Bonds and

280000 in Saving Account

Explanation:

x*0.03 = y*0.02

Assuming she has to invest everything

x+y = 700,000

x = 700,000-y

Plug that in to the above

(700000-y)*0.03 = y*0.02

21000 - 0.03y = 0.02y

21000 = 0.05y

y = 420000

x = 700,000-y

x = 700,000-420000= 280000

420000 in Bonds and

280000 in Saving Account

Income saving=280000*2%=5600

Utility bonds=420000*3%= 12600

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23