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You spend $300 on a holiday using your credit card, your parents give you a gift of $500 cash and you earn $200 in interest on your savings account. Calculate the overall effect of these three events on your PROFIT.Note: Please do NOT include dollar signs or commas in your answer.

Question

You spend 300onaholidayusingyourcreditcard,yourparentsgiveyouagiftof300 on a holiday using your credit card, your parents give you a gift of 500 cash and you earn $200 in interest on your savings account. Calculate the overall effect of these three events on your PROFIT.Note: Please do NOT include dollar signs or commas in your answer.

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Solution

To calculate the overall effect of these three events on your profit, you need to add the money you received and subtract the money you spent.

  1. Start with the money you spent on a holiday using your credit card. This is a loss, so it's -$300.

  2. Then, add the money your parents gave you. This is a gain, so it's +$500.

  3. Finally, add the interest you earned on your savings account. This is also a gain, so it's +$200.

So, the calculation is: -300 (holiday) + 500 (gift from parents) + 200 (interest) = 400

So, the overall effect of these three events on your profit is 400.

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