Split Fund Interest with Principal of 800 and Fund 1 = 9% and Fund 2 = 12% and Interest Paid = 79.50

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An investment of 800 was made one year ago.

Part of the investment was placed into an account paying s interest at 9%

The remainder of the investment was placed into an account paying s interest at 12%

After one year, you received a total of 79.50 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 800 - x

Calculate Interest Credit for Fund 1

Since Fund 1 credits interest using the simple interest method, we have 0.09x

Calculate Interest Credit for Fund 2

Since Fund 2 credits interest using the simple interest method, we have 0.12(800 - 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 79.50, we set up an equation

0.09x + 0.12(800 - x) = 79.50

0.09x + 96 - 0.12x = 79.50

96 - 0.03x = 79.50

Subtract 96 from each side:

96 - 96 - 0.03x = 79.50 - 96

Cancelling the 96 on the left side, we get:

-0.03x = -16.5

Divide each side by -0.03

Cancelling the -0.03 on the left side, we get:

x = 550 ← Fund 1 Investment

This means we should 800 - 550 = 250 into Fund 2

Final Answer