Question

Angelo has a savings account worth $1000 that earns 2% interest, a student loan of $40,000 that charges 4.6% interest, and a credit card bill that has $1500 on it with a 23.4% interest rate. He has a budget surplus of $300 at the end of the month. What should he do with the $300?

Answer 1

Explanation:

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Answer 2

Concept:

Budget surplus is the excess of the income over expenditure. It is the net amount which is left after making provision for all the expenditures.

Given:

Savings account - $1000, earning 2% interest.

Loan- $40000 , charging 4.6% interest.

Credit card bill- $1500, charging 23.4% interest.

Budget surplus- $300

To find:

The uses of the surplus amount of $300.

Solution:

The savings of these $300 can be put to different uses-

• Investment into safe areas
• Buying shares in the share market for earning purposes
• Save for future uses.

Hence, The surplus amount can be used for the above purposes.

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