An investment of 10000 was made one year ago.
Part of the investment was placed into an account paying s interest at 10%
The remainder of the investment was placed into an account paying s interest at 5%
After one year, you received a total of 800 in interest. How much was invested in each account?
Calculate Principal Amounts for each fund:
For Fund 1, we invest an unknown amount, let us call it x
For Fund 2, the remaining principal is 10000 - x
Calculate Interest Credit for Fund 1
Since Fund 1 credits interest using the simple interest method, we have 0.1x
Calculate Interest Credit for Fund 2
Since Fund 2 credits interest using the simple interest method, we have 0.05(10000 - x)
Set up a grid with fund details:
| Interest Paid | Principal | Interest Rate | |
| Fund 1 | 0.1x | x | 10% |
| Fund 2 | 0.05(10000 - x) | (10000 - x) | 5% |
| Total | 800 | 10000 | -- |
Calculate x from the grid:
Since both Interest paid columns add up to the total interest earned of 800, we set up an equation
0.1x + 0.05(10000 - x) = 800
0.1x + 500 - 0.05x = 800
500 + 0.05x = 800
Subtract 500 from each side:
500 - 500 + 0.05x = 800 - 500
Cancelling the 500 on the left side, we get:
0.05x = 300
Divide each side by 0.05
| 0.05x | |
| 0.05 |
| = |
| 300 |
| 0.05 |
Cancelling the 0.05 on the left side, we get:
x = 6000 ← Fund 1 Investment
This means we should 10000 - 6000 = 4000 into Fund 2
Final Answer
4000 into Fund 2
You have 2 free calculationss remaining
What is the Answer?
4000 into Fund 2
How does the Split Fund Interest Calculator work?
This calculator has 4 inputs.
What 3 formulas are used for the Split Fund Interest Calculator?
Fund 2 investment is T - x
Interest paid = Interest Rate * Investment
For more math formulas, check out our Formula Dossier
What 3 concepts are covered in the Split Fund Interest Calculator?
- interest
- payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
- principal
- The amount borrowed on a loan, before interest is charged
- split fund interest
Example calculations for the Split Fund Interest Calculator
- An investment of 10000 was made one year ago. Part of the investment was placed into an account paying s interest at 5% The remainder of the investment was placed into an account paying s interest at 10% After one year, you received a total of 800 in interest. How much was invested in each account?
- An investment of 20000 was made one year ago. Part of the investment was placed into an account paying s interest at 6% The remainder of the investment was placed into an account paying s interest at 8% After one year, you received a total of 900 in interest. How much was invested in each account?
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