Answer:
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.
How much money are you making on your investment in a year?
1. How much are you making on your investment
2. How much money are you paying in interest in a year on your card?
3. What's your total gain/loss that year? Enter a negative value for a loss.
Explanation:
Investment Capital = $1,500
Interest rate 8.5%
Amount owe on credit card for one year is $1,600
Interest paid on debit card debit is 19%
a. Profit make from investment
Profit=interest rate×Capital invested
Profit = 8.5% of 1500
Profit = 8.5/100 × 1500
Profit = $127.5
b. Amount paid from card debit
Amount paid= debit rate × Amount owe
Amount paid = 19% of 1600
Amount paid = 19/100 × 1600
Amount paid = $304
c. Gain/loss = Profit - expenses
Gain/loss = 127.5 — 304
Gain/loss = —$176.5
The negative sign is showing that it is a loss
Then, the loss is $176.5