Split Fund Interest with Principal of 4000 and Fund 1 = 10% and Fund 2 = 15% and Interest Paid = 430

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

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An investment of 4000 was made one year ago.
Part of the investment was placed into an account paying s interest at 10%
The remainder of the investment was placed into an account paying s interest at 15%
After one year, you received a total of 430 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 4000 - x

Calculate Interest Credit for Fund 1

Since Fund 1 credits interest using the simple interest method, we have 0.1x

Calculate Interest Credit for Fund 2

Since Fund 2 credits interest using the simple interest method, we have 0.15(4000 - x)

Set up a grid with fund details:

	Interest Paid	Principal	Interest Rate
Fund 1	0.1x	x	10%
Fund 2	0.15(4000 - x)	(4000 - x)	15%
Total	430	4000	--

Calculate x from the grid:

Since both Interest paid columns add up to the total interest earned of 430, we set up an equation
0.1x + 0.15(4000 - x) = 430
0.1x + 600 - 0.15x = 430
600 - 0.05x = 430

Subtract 600 from each side:

600 - 600 - 0.05x = 430 - 600

Cancelling the 600 on the left side, we get:

-0.05x = -170

Divide each side by -0.05

-0.05x
-0.05

=

-170

-0.05

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

x = 3400 ← Fund 1 Investment
This means we should 4000 - 3400 = 600 into Fund 2

Final Answer

See Answer

3400 into Fund 1
600 into Fund 2

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Tags:

• interest
• principal
• split fund interest

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