Question

You owe $1,534.09 on a credit card that has an interest rate of 15.7% APR. You decide to put $250.00 into a savings account earning a 3.5% APR and another $500.00 toward the credit card at the beginning of the month. What is the difference in interest saved at the end of a full month between this decision and if you had paid the entire $750.00 toward the credit card?

Answer 1

Answer: $2.54

Explanation:

$1,534.09 - $500.00 = $1,034.09

($1,034.09)(.157)/12=$13.53

($250.00)(.035)/12=$0.73

$13.53 - $0.73=$12.80

$1,534.09 - $750.00=$784.09

($784.09)(.157)/12=$10.26

$12.80 - $10.26=$2.54

hope this helps & gl

Answer 2

Answer: $2.54

Step-by-step explanation: I had it on a test. Honestly I can't explain it, but this is definitely the correct answer.