Question

You're really good at investing and you have $1,500 in your investment account.You make 8.5% interest a year on your investment account!For a year you owe $1,600 on a credit card.You pay 19% interest a year on this credit card debt.Answer these questions:Some of the answers are incorrect. Try again...Here is a hint: How much are you making on your investment? Calculate: $1,500 * 8.5%. What do you pay in interest on your card? You do the math: $1,600 * 19%. Looks like a huge loss of money, right? Enter the loss as a negative value.How much money are you making on your investment in a year?$ How much money are you paying in interest in a year on your card?$ What's your total gain/loss that year?$ Enter a negative value for a loss.

Answer 1

Answer:

Step-by-step explanation:

To determine how much are you making on your investment, we will apply the simple interest formula. It is expressed as

I = PRT/100

Where

P = principal or amount invested,

R = interest rate

T = time

From the information given,

P = $1,500

T = 1 year

R = 8.5

I =( 1500×8.5×1)/100

I = $127.5

For a year you owe $1,600 on a credit card. You pay 19% interest a year on this credit card debt.

Interest paid = (1600×19×1)/100 = $304

The loss is 304 - 127.5 = - $176.5