Question

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?
$
How much money are you paying in interest in a year on your card?
$
What's your total gain/loss that year?
$

Answer 1

`My~gain~in~that~year~was~\$176.5`

Explanation:

`Greetings!`

`I'm~Isabelle~Williams~and~will~be~answering~your~question!`

`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:`

`=\$(1500* 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~is:`

`=\$(1600* 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`

`Hope~my~answer~helps!~Have~an~amazing~day~ahead!`

`-Isabelle~Williams`