Split Fund Interest with Principal of 800 and Fund 1 = 9% and Fund 2 = 12% and Interest Paid = 79.50
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 Paid
Principal
Interest
Rate
Fund 1
0.09x
x
9%
Fund 2
0.12(800 - x)
(800 - x)
12%
Total
79.50
800
--
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?
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
