Split Fund Interest with Principal of 6000 and Fund 1 = 8% and Fund 2 = 13% and Interest Paid = 710

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An investment of 6000 was made one year ago.

Part of the investment was placed into an account paying s interest at 8%

The remainder of the investment was placed into an account paying s interest at 13%

After one year, you received a total of 710 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 6000 - x

Calculate Interest Credit for Fund 1

Since Fund 1 credits interest using the simple interest method, we have 0.08x

Calculate Interest Credit for Fund 2

Since Fund 2 credits interest using the simple interest method, we have 0.13(6000 - x)

Set up a grid with fund details:

Calculate x from the grid:

Since both Interest paid columns add up to the total interest earned of 710, we set up an equation

0.08x + 0.13(6000 - x) = 710

0.08x + 780 - 0.13x = 710

780 - 0.05x = 710

Subtract 780 from each side:

780 - 780 - 0.05x = 710 - 780

Cancelling the 780 on the left side, we get:

-0.05x = -70

Divide each side by -0.05

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

x = 1400 ← Fund 1 Investment

This means we should 6000 - 1400 = 4600 into Fund 2

Final Answer