Dolores used to work as a high school teacher for $55,000 per year but quit in order to start her own catering business.To buy the necessary equipment,she withdrew $30,000 from her savings (which paid 2 percent interest per year) and borrowed $30,000 from her uncle,to whom she pays 3 percent interest per year.Last year she paid $25,000 for ingredients and had revenue of $75,000.She asked Louis,an accountant,and Greg,an economist,to calculate her profit for her.What did they say

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Louis calculated her profit as revenue minus expenses, which is $75,000 - $25,000 = $50,000. He then subtracted the interest she paid on her savings and loan, which is $30,000 * 0.02 + $30,000 * 0.03 = $1,800, to get a profit of $50,000 - $1,800 = $49,100.Greg calculated her profit as the difference between her previous salary and her current revenue, which is $55,000 - $75,000 = -$20,000. He then added the interest she earned on her savings, which is $30,000 * 0.02 = $600, to get a loss of -$20,000 + $600 = -$19,400.

Dolores Used to Work as a High School Teacher for $55,000