Question

Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest over the course of the year if she transfers her balance to a credit card with an APR of 10.8%, compounded monthly?

Answer 1

$152.51

Step-by-step explanation:

apeex

Answer 2

Lois will save $152.51 when she wil transfer her balance.

Step-by-step explanation:

Amount to be paid in 1 year for original credit card is given as

Here
is the amount to be paid after P is the balance which is 970,
is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

Similarly for the second one the values are calculated as

The differnce of the two values is calculated as

The difference is $152.51 which she could save.