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

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

3400 into Fund 1 600 into Fund 2

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?

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