Question

You have two credit cards. One has a balance of $3,745.00 at a 6.25% apr and the other has a balance of $1,045.00 and is dependent upon your credit score. Your score is 500. How much total interest is accrued in the first month? Score <500 500-650 651-750 751-800 rate (apr) 12.75% 10.25% 7.5% 5.75% $28.44 $24.51 $30.41 $26.04

Answer 1

3745 x .0625 / 12 + 1045 x .1025 / 12 = 28.43.

$28.44 would be the closest.

Hope this helps & good luck. :)

Answer 2

The interest on both cards is $28.42 closest to $28.44.

Explanation:

First card p = 3745

r = 6.25% or
`6.25/12/100=0.005208`

Interest accrued in a month =
`3745*0.005208=19.50` dollars

Second card p =1045

Card score is 500 so rate = 10.25% or
`10.25/12/100=0.0085416`

Interest accrued =
`1045*0.0085416=8.92` dollars

Hence, total interest on both cards =
`19.50+8.92=28.42` dollars, closest to $28.44