Split Fund Interest with Principal of 10000 and Fund 1 = 7% and Fund 2 = 10% and Interest Paid = 730

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An investment of 10000 was made one year ago.

Part of the investment was placed into an account paying s interest at 7%

The remainder of the investment was placed into an account paying s interest at 10%

After one year, you received a total of 730 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 0.07x

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:

Calculate x from the grid:

Since both Interest paid columns add up to the total interest earned of 730, we set up an equation

0.07x + 0.1(10000 - x) = 730

0.07x + 1000 - 0.1x = 730

1000 - 0.03x = 730

Subtract 1000 from each side:

1000 - 1000 - 0.03x = 730 - 1000

Cancelling the 1000 on the left side, we get:

-0.03x = -270

Divide each side by -0.03

Cancelling the -0.03 on the left side, we get:

x = 9000 ← Fund 1 Investment

This means we should 10000 - 9000 = 1000 into Fund 2

Final Answer