So I am splitting $412k with my partner, so $206k each.....I also owe him $42k from a previous deal that I want to repay to him out of my
$206k. So every time I subtract it from my $206k I get $164k and he ends up with $248k, a difference of $84k!! I only owe him $42k, so why
is the difference double the amount I owe?
Please help me!!
It's simple you said you want to split $412k with your partner so each is $206k
So, originally you're giving $206k to your partner. So, you now state you want to pay him back 42k from a previous deal out of your own $206.
so 206k + 42k is 248k you paid him total.
your 206k is now 206k - 42k = 164k.
so he gets 248k and you get 164k which is a 84k difference. the difference is double because you're losing 42k from the 206k and he's gaining 42k.
42k + 42k is =84k so the gap when you compare what you get is double.
If you wanted to get a 42k difference.
the reason it's doubled is because you're splitting up $412 by 2.
What you should have done is 412k split it by you having 248k and your partner has 164k.
then pay 42k from your 248k which will make you have 206k and when he gets the 42k he will get 206k.
this would mean the 206k would have have 42k built in it so it's like you paid him $206 but in reality that $412k deal he's getting $164k just from the deal and 42 is being paid for what you owe him from a previous transaction.
The reason the difference will always be doubled is because you're splitting up $412 by 2. there would always be a double difference because the situation is as squared root type of situation.