Split Fund Interest with Principal of 4300 and Fund 1 = 6 % and Fund 2 = 9% and Interest Paid = 315
An investment of 4300 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 9% After one year, you received a total of 315 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 4300 - x
Calculate Interest Credit for Fund 1
Since Fund 1 credits interest using the simple interest method, we have 0.06x
Calculate Interest Credit for Fund 2
Since Fund 2 credits interest using the simple interest method, we have 0.09(4300 - x)
Set up a grid with fund details:
Interest Paid
Principal
Interest
Rate
Fund 1
0.06x
x
6 %
Fund 2
0.09(4300 - x)
(4300 - x)
9%
Total
315
4300
--
Calculate x from the grid:
Since both Interest paid columns add up to the total interest earned of 315, we set up an equation 0.06x + 0.09(4300 - x) = 315 0.06x + 387 - 0.09x = 315 387 - 0.03x = 315
Subtract 387 from each side:
387 - 387 - 0.03x = 315 - 387
Cancelling the 387 on the left side, we get:
-0.03x = -72
Divide each side by -0.03
-0.03x
-0.03
=
-72
-0.03
Cancelling the -0.03 on the left side, we get:
x = 2400 ← Fund 1 Investment This means we should 4300 - 2400 = 1900 into Fund 2
Final Answer
2400 into Fund 1 1900 into Fund 2
What is the Answer?
2400 into Fund 1 1900 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
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
