Question

you owe 1945.61 on a credit card that has an 11.2% APR. the minimum payment due is 156.00. you decide to pay 300.00. how much do you save in interest after one month by paying more than the minimum payment, assuming you make both payments at the beginning of the month

Answer 1

The answer is $1.34

Explanation:

The given information is :

Principle or p = $1,945.61

rate = 11.2% or 0.112 or converting it in months =
`(11.2)/(12)= 0.933`%

Minimum due payment = $156

Paid amount = $300

The interest saved by paying more than the minimum amount after 1 month is:

`(300-156)*0.00933`

=
`144*0.00933`

= $1.3435 ≈ $1.34

So, the interest saved is $1.34