Basic Math/Money math
QUESTION: My sister and I went on a trip together. We agreed to split the cost that both of us incurred less a prior amount owed for flowers by me of $150.00. I will list the way that I calculated what was owed and then how she calculated what was owed. If you could tell me which is right and why I would be eternally grateful :)See Below
My calculation -
My credit card bill of $1060.00 plus your credit card bill of $232.00 equals $1292.00. That leaves us both responsible for $646.00. I have $150.00 left owing to you for the flowers so that makes your share of the trip expenses $496.00.
My sisters calculation -
Your credit card bill is $1060.00/2 = $530.00, My credit card bill is $232.00 of which you owe me $116.00. You also owe $150.00 for flowers. So taking the $530.00 that I owe you and subtracting the $116.00 and the $150.00 you owe me, leaves me owing you $264.00.
Who is right? and why?
Thank you in advance
To answer your question, I will need to know if $150 that you owe to your sister are included in your credit card bill or is it a dofferent expense prior to your use of credit cards in the trip.
Please let me know this detail so that I can answer your question.
---------- FOLLOW-UP ----------
QUESTION: The $150 is not in the cc bill
Thanks for the information.
Your sister's calculation is accurate. Your's is partially correct.
As per you, both of you are responsible for $646. However now you need to take into consideration the amounts that both of you are actually paying. You are paying $1060 (cc bill#. So you need to get $414 #$1060-$646) from you sister. However you owe her $150 for flowers. So if you deduct $150 from $414, you will get $264. So she owes you $264.
To summarize, your calculation is correct but you did not consider the amount that you are actually paying in your cc bill. You sister's approach is different, but she has considered all the information in her calculations.
I hope that this helps. Please let me know if you need additional information.