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%

Answer 1

we only know what the rate of one card is, so 3745*.0625 = 234.0625

$234.06 interest in the first month

Answer 2

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

the closest is 28.44