On January 1, Forrester County is holding investments for Tinsel Town valued at $500,000 in an investment pool, accounted for in an investment trust fund. On January 1, Valley School District invests $1,500,000 in the pool. Earnings on pooled investments for the six months ended June 30 totaling $300,000 were received in cash. 1) What percentage interest in the pool is held by the town and the school district

We can calculate percentage interest in the pool held by the town and the school district by dividing the investment held by total investment in the pool.

DATA

Investment held by tinsel town = 500,000

Investment held by valley school = 1,500,000

Total investment in pool = 2,000,000

Solution

Percentage interest = Investment held /Total investment in pool

Tinsel town percentage interest = 500,000/2,000,000

Tinsel town percentage interest = 25%

Valley School percentage interest = 1,500,000/2,000,000

Tinsel town percentage interest = 75%