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

Principal =
Fund 1 Interest = %
Fund 2 Interest = %
Total Interest paid =

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:

 Interest Paid Principal Interest Rate Fund 1 0.08x x 8% Fund 2 0.13(6000 - x) (6000 - x) 13% Total 710 6000 --

## 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

-0.05x = -70

## Divide each side by -0.05

 -0.05x -0.05
 =
 -70 -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

1400 into Fund 1
4600 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

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