 # Split Fund Interest with Principal of 10000 and Fund 1 = 5% and Fund 2 = 10% and Interest Paid = 800

Principal =
Fund 1 Interest = %
Fund 2 Interest = %
Total Interest paid =

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?

## 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 0.05x

## Calculate Interest Credit for Fund 2

Since Fund 2 credits interest using the simple interest method, we have 0.1(10000 - x)

## Set up a grid with fund details:

 Interest Paid Principal Interest Rate Fund 1 0.05x x 5% Fund 2 0.1(10000 - x) (10000 - x) 10% 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
0.05x + 0.1(10000 - x) = 800
0.05x + 1000 - 0.1x = 800
1000 - 0.05x = 800

## Subtract 1000 from each side:

1000 - 1000 - 0.05x = 800 - 1000

-0.05x = -200

## Divide each side by -0.05

 -0.05x -0.05
 =
 -200 -0.05

## Cancelling the -0.05 on the left side, we get:

x = 4000 ← Fund 1 Investment
This means we should 10000 - 4000 = 6000 into Fund 2

4000 into Fund 1
6000 into Fund 2

### How does the Split Fund Interest Calculator work?

Free Split Fund Interest Calculator - Given an initial principal amount, interest rate on Fund 1, interest rate on Fund 2, and a total interest paid, calculates the amount invested in each fund.
This calculator has 4 inputs.

### What 3 formulas are used for the Split Fund Interest Calculator?

1. Fund 1 investment is x
2. Fund 2 investment is T - x
3. 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