 # Split Fund Interest with Principal of 7000 and Fund 1 = 7% and Fund 2 = 9% and Interest Paid = 550

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

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

-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

4000 into Fund 1
3000 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?

1. Fund 1 investment is x
2. Fund 2 investment is T - x
3. 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