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

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?

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 21000 - 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 0.07(21000 - x)

Set up a grid with fund details:

  Interest PaidPrincipalInterest Rate
Fund 10.08xx8%
Fund 20.07(21000 - x)(21000 - x)7%
Total160021000--

Calculate x from the grid:

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

Subtract 1470 from each side:

1470 - 1470 + 0.01x = 1600 - 1470

Cancelling the 1470 on the left side, we get:

0.01x = 130

Divide each side by 0.01

0.01x
0.01
=
  
130
0.01

Cancelling the 0.01 on the left side, we get:

x = 13000 ← Fund 1 Investment

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

Final Answer



13000 into Fund 1
8000 into Fund 2



What is the Answer?
13000 into Fund 1
8000 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?

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

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

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