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 =
  

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 PaidPrincipalInterest Rate
Fund 10.1xx10%
Fund 20.15(4000 - x)(4000 - x)15%
Total4304000--


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








What is the Answer?

3400 into Fund 1
600 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?

  1. Fund 1 investment is x
  2. Fund 2 investment is T - x
  3. 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

  1. 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?
  2. 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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