Answer:
My gain in that year is - $ 176.5
Step-by-step explanation:
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,
= $ [tex]\frac {1500 \times 8.5}{100}[/tex]
= $ 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,
= $ [tex]\frac {1600 \times 19}{100}[/tex]
= $ 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
So, my loss in that year is $ 176.5
