An investment of 21000 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 7%

After one year, you received a total of 1600 in interest. How much was invested in each account?

For Fund 1, we invest an unknown amount, let us call it x

For Fund 2, the remaining principal is 21000 - x

Since Fund 1 credits interest using the simple interest method, we have 0.08x

Since Fund 2 credits interest using the simple interest method, we have 0.07(21000 - x)

Interest Paid | Principal | Interest Rate | |

Fund 1 | 0.08x | x | 8% |

Fund 2 | 0.07(21000 - x) | (21000 - x) | 7% |

Total | 1600 | 21000 | -- |

Since both Interest paid columns add up to the total interest earned of 1600, we set up an equation

0.08x + 0.07(21000 - x) = 1600

0.08x + 1470 - 0.07x = 1600

1470 + 0.01x = 1600

1470 - 1470 + 0.01x = 1600 - 1470

0.01x = 130

0.01x | |

0.01 |

= |

130 |

0.01 |

x = **13000** ← Fund 1 Investment

This means we should 21000 - 13000 = **8000** into Fund 2

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.

This calculator has 4 inputs.

Fund 1 investment is x

Fund 2 investment is T - x

Interest paid = Interest Rate * Investment

For more math formulas, check out our Formula Dossier

Fund 2 investment is T - x

Interest paid = Interest Rate * Investment

For more math formulas, check out our Formula Dossier

- 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

- 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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