An investment of 20000 was made one year ago.
Part of the investment was placed into an account paying s interest at 10%
The remainder of the investment was placed into an account paying s interest at 7%
After one year, you received a total of 1880 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 20000 - x
Calculate Interest Credit for Fund 1
Since Fund 1 credits interest using the simple interest method, we have 0.1x
Calculate Interest Credit for Fund 2
Since Fund 2 credits interest using the simple interest method, we have 0.07(20000 - x)
Set up a grid with fund details:
| Interest Paid | Principal | Interest Rate | |
| Fund 1 | 0.1x | x | 10% |
| Fund 2 | 0.07(20000 - x) | (20000 - x) | 7% |
| Total | 1880 | 20000 | -- |
Calculate x from the grid:
Since both Interest paid columns add up to the total interest earned of 1880, we set up an equation
0.1x + 0.07(20000 - x) = 1880
0.1x + 1400 - 0.07x = 1880
1400 + 0.03x = 1880
Subtract 1400 from each side:
1400 - 1400 + 0.03x = 1880 - 1400
Cancelling the 1400 on the left side, we get:
0.03x = 480
Divide each side by 0.03
Cancelling the 0.03 on the left side, we get:
x = 16000 ← Fund 1 Investment
This means we should 20000 - 16000 = 4000 into Fund 2
Final Answer
16000 into Fund 1
4000 into Fund 2
You have 1 free calculations remaining
What is the Answer?
16000 into Fund 1
4000 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 xFund 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?
interestpayment 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 rateprincipalThe amount borrowed on a loan, before interest is chargedsplit fund interestExample calculations for the Split Fund Interest Calculator
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