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
600 into Fund 2
Keep Practicing
What is the Answer?
600 into Fund 2
How does the Split Fund Interest Calculator work?
This calculator has 4 inputs.
What 3 formulas are used for the Split Fund Interest Calculator?
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
- 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?
Tags:
Add This Calculator To Your Website
