On 31 March 1997 John acquired a painting for $400. John borrowed the $400 from Witch Bank. The loan
was a fixed interest loan on which John paid interest of $45. John sold the painting in October 2008 for
$22,130.
Calculate the Net Capital Gain, if any, to be include in John’s assessable income.

Question

On 31 March 1997 John acquired a painting for $400. John borrowed the $400 from Witch Bank. The loan
was a fixed interest loan on which John paid interest of $45. John sold the painting in October 2008 for
$22,130.
Calculate the Net Capital Gain, if any, to be include in John’s assessable income.

anonymous · Answer

well why not write an equation :)

nottim · Answer

this loan is monthly?

nottim · Answer

what's da interest?

anonymous · Answer

total interest paid is $45

nottim · Answer

isnt it just subtraction then?

anonymous · Answer

no, the answer is Zero(0) but i cant get it

nottim · Answer

so selling that painting completely paid off the loan?

anonymous · Answer

i can only assume that the total interest paid is $45....i dont know for sure

nottim · Answer

so..are there 1 or 2 formulas here? 1 big one, or 1 that calculates the loan interest, and the interest on the painting?

anonymous · Answer

i will need to confirm some things about this question on my own, thanks anyways

nottim · Answer

srry i couldnt help much bro