Question

You have a credit card with a balance of $2,856.74 at a 14.75% APR. You decide to put $629.63/month toward reducing your debt. How much interest do you save in 1 full month?

Answer 1

629.63*0.1475/12=7.74

Answer 2

Interest save in 1 full month=$7.74

Explanation:

In this question we have given

credit card balance,P = $2,856.74

rate,R=14.75%

monthly installment,n=$629.63

Therefore, Interest save in 1 full month=
`(n* R)/(100* 12)`.............(1)

put values of n and R in equation (1)

`(629.63* 14.75)/(12* 100)`

Interest save in 1 full month=$7.74