I saw this on discord and I feel like an idiot but I’m so confused.
*”Question for you guys If I borrow $50 from my mom and $50 from my dad to purchase an object worth $97. Since I would have $3 change I would give one to my mom and one to my dad and keep one my self
So I still owe my mom $49 and my dad $49 that means I owe $98 counting the one I have makes is $99 where did the other $1 go?”*
In: Mathematics
You are mixing up two different hings: what you owe your parents and what you have.
In the end you have an item worth $97 and $1 in money, but you also have $49 + $49 in debts.
$97
$1
-$49
-$49
—-
$0
You started out with zero assets, zero debts and zero money. Then you had zero assets, $100 in debts and $100 in cash and then you had $97 in assets $100 in debts and $3 in cash and in the end you had $ 97 in assets, $98 in debts and $1 in cash.
| start | getting a loan | buying the item|partial repayment of debt
—|—:|—-:|—-:|—:
Assets | $0 | $0 | $97| $97
Cash | $0 | $100 | $3| $1
Debt | $0 | -$100 | -$100| -$98
||||
Total| $0|$0|$0|$0|
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