An investment of 29000 was made one year ago.
Part of the investment was placed into an account paying s interest at 8%
The remainder of the investment was placed into an account paying s interest at 6%
After one year, you received a total of 2020 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 29000 - x
Calculate Interest Credit for Fund 1
Since Fund 1 credits interest using the simple interest method, we have 0.08x
Calculate Interest Credit for Fund 2
Since Fund 2 credits interest using the simple interest method, we have 0.06(29000 - x)
Set up a grid with fund details:
| Interest Paid | Principal | Interest Rate | |
| Fund 1 | 0.08x | x | 8% |
| Fund 2 | 0.06(29000 - x) | (29000 - x) | 6% |
| Total | 2020 | 29000 | -- |
Calculate x from the grid:
Since both Interest paid columns add up to the total interest earned of 2020, we set up an equation
0.08x + 0.06(29000 - x) = 2020
0.08x + 1740 - 0.06x = 2020
1740 + 0.02x = 2020
Subtract 1740 from each side:
1740 - 1740 + 0.02x = 2020 - 1740
Cancelling the 1740 on the left side, we get:
0.02x = 280
Divide each side by 0.02
| 0.02x | |
| 0.02 |
| = |
| 280 |
| 0.02 |
Cancelling the 0.02 on the left side, we get:
x = 14000 ← Fund 1 Investment
This means we should 29000 - 14000 = 15000 into Fund 2
Final Answer
15000 into Fund 2
You have 2 free calculationss remaining
What is the Answer?
15000 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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