Investment: $500K split between 16% bonds, 4% savings; needs

[Angela123]

A lottery winner who is going to invest in utility bonds and a savings account using the following data:
Assume that her total winnings are $ 500000, that the utility bonds will pay 16 percent per year, and that the savings account will pay 4 percent per year.

How much should she allocate to each investment in order for the yearly incomes from them to be the same?

What will be her total yearly income from these investments?

This is what I did: Let x = amount that will earn 16%;then amount that will earn 4% is (500000 - x) So, for interest to be same: .16x = .04(500000 - x) and x=$100,000. Now what?

 

[stapel]

Let x = amount that will earn 16%...

...and x=$100,000. Now what?

Now find the other value.

Then do the multiplication of each value by its corresponding rate, and then add, to find the total interest earned.

Eliz.

 

[Angela123]

I figured out that $100,000 goes to utility bonds and $400,000 goes to savings account, but I don't get how you figure out the total yearly income from the investments. I took 16% of $100,000 and 4% of $400,000 so my answer was $568,000. Where did I go wrong?

 

[stapel]

Where did I go wrong?

Since you haven't shown your work, I'm afraid there is no way to know. Sorry!

Eliz.