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### Setting up Interest Problems

```
Date: 9/7/96 at 15:26:39
From: John Osborn
Subject: Setting up Interest Problems

I start with \$10,000 in principle. I investing part in savings at 12
percent simple interest and the rest in a mutual fund at 15 percent
annually.  At the end of one year the income from the two funds is
\$1,275. How much was invested in each fund?

I know the following:  \$10,000 = Principle
\$1,275 = Interest Earned
12 & 15 percent = Rate
1yr (12 mo) = Time

How do I go about setting this problem up?
```

```
Date: 9/8/96 at 0:58:32
From: Doctor Mike
Subject: Re: Setting up Interest Problems

Hi John,

Put  S  dollars into Savings and  F  dollars into the Fund.
Since all of the principal is invested in one or the other
place, you have S + F = 10000 .  The information about rates
and total earnings tells you  S*(0.12) + F*(0.15) = 1275 .

I hope this helps.  You can take it from here.

-Doctor Mike,  The Math Forum
Check out our web site!  http://mathforum.org/dr.math/
```
Associated Topics:
High School Interest

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