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

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:

  Interest PaidPrincipalInterest Rate
Fund 10.09xx9%
Fund 20.12(800 - x)(800 - x)12%
Total79.50800--

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

-0.03x
-0.03
=
  
-16.5
-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

550 into Fund 1
250 into Fund 2





What is the Answer?
550 into Fund 1
250 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
Example calculations for the Split Fund Interest Calculator

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