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? $ 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.

Question

Advanced Placement (AP)

Meghan Cortez

6 February, 18:09

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? $ 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.

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Andrew Russell · Answer 1

At 8.5% I am making after one year 1,500 + 1,500 x 0.08 = $1,620

My credit card cost 1,600 + 1,600 x 0.19 = $1,904

Total balance = Interest (negative) of credit card + Interest earn (positive)

That is - 304 + 120 = - $181