Question

Tell us how much you're losing in this example:

Answer 1

Answer:

My gain in that year is  - $ 176.5

Step-by-step explanation:

I have $ 1,500 in my investment account. Rate of  interest for a year in my investment account = 8.5 %.

So, the amount of money I am making on my investment in a year,

= $ $\frac {1500 \times 8.5}{100}$

= $ 127 .5

I owe $ 1600 on a credit card . Rate of  interest a year on this credit card debt,  = 19 % .

So, the money I am paying in interest in a year on my card,

= $ $\frac {1600 \times 19}{100}$

= $ 304

Since, neither I withdraw money from my investment account  except the interest , nor I pay my whole credit card debt except the interest, so, my gain in that year,

= $ (127.5 - 304)

= - $ 176.5

So, my loss in that year is $ 176.5