okay, more questions...\ntell us how much youre losing in this example:\n- youre really good at investing…

okay, more questions...\ntell us how much youre losing in this example:\n- youre really good at investing and you have $1,500 in your investment account.\n- you make 8.5% interest a year on your investment account!\n- for a year you owe $1,600 on a credit card.\n- you pay 19% interest a year on this credit card debt.\nanswer these questions:\n- how much money are you making on your investment in a year?\n$ \n- how much money are you paying in interest in a year on your card?\n$ \n- whats your total gain/loss that year?\n$ enter a negative value for a loss.

okay, more questions...\ntell us how much youre losing in this example:\n- youre really good at investing and you have $1,500 in your investment account.\n- you make 8.5% interest a year on your investment account!\n- for a year you owe $1,600 on a credit card.\n- you pay 19% interest a year on this credit card debt.\nanswer these questions:\n- how much money are you making on your investment in a year?\n$ \n- how much money are you paying in interest in a year on your card?\n$ \n- whats your total gain/loss that year?\n$ enter a negative value for a loss.

Answer

Answer:

  • How much money are you making on your investment in a year? $127.5
  • How much money are you paying in interest in a year on your card? $304
  • What's your total gain/loss that year? -$176.5

Explanation:

Step1: Calculate investment interest

The formula for simple - interest is $I = P\times r$, where $P$ is the principal amount and $r$ is the interest rate. For the investment, $P = 1500$ and $r=0.085$. So, $I_{investment}=1500\times0.085 = 127.5$.

Step2: Calculate credit - card interest

For the credit - card debt, $P = 1600$ and $r = 0.19$. Using the simple - interest formula $I = P\times r$, we get $I_{credit - card}=1600\times0.19=304$.

Step3: Calculate total gain/loss

The total gain/loss $G$ is the investment interest minus the credit - card interest. So, $G=I_{investment}-I_{credit - card}=127.5 - 304=-176.5$.