An investment of 7000 was made one year ago.
Part of the investment was placed into an account paying s interest at 7%
The remainder of the investment was placed into an account paying s interest at 9%
After one year, you received a total of 550 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 7000 - x
Calculate Interest Credit for Fund 1
Since Fund 1 credits interest using the simple interest method, we have 0.07x
Calculate Interest Credit for Fund 2
Since Fund 2 credits interest using the simple interest method, we have 0.09(7000 - x)
Set up a grid with fund details:
| Interest Paid | Principal | Interest Rate | |
| Fund 1 | 0.07x | x | 7% |
| Fund 2 | 0.09(7000 - x) | (7000 - x) | 9% |
| Total | 550 | 7000 | -- |
Calculate x from the grid:
Since both Interest paid columns add up to the total interest earned of 550, we set up an equation
0.07x + 0.09(7000 - x) = 550
0.07x + 630 - 0.09x = 550
630 - 0.02x = 550
Subtract 630 from each side:
630 - 630 - 0.02x = 550 - 630
Cancelling the 630 on the left side, we get:
-0.02x = -80
Divide each side by -0.02
| -0.02x | |
| -0.02 |
| = |
| -80 |
| -0.02 |
Cancelling the -0.02 on the left side, we get:
x = 4000 ← Fund 1 Investment
This means we should 7000 - 4000 = 3000 into Fund 2
Final Answer
3000 into Fund 2
You have 2 free calculationss remaining
What is the Answer?
3000 into Fund 2
How does the Split Fund Interest Calculator work?
This calculator has 4 inputs.
What 3 formulas are used for the Split Fund Interest Calculator?
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
Example calculations for the Split Fund Interest Calculator
- 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?
- 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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