Question

Need help with calculation:

you owe $2154.35 on your PBnJ credit card that has an interest rate of 9.85% APR, rather than placing $435 into a savings account earning 2.5% APR, you pay down the principal at the beginning of the month on the credit card. How much interest did you save? (HINT: Calculate the difference between the interest you would earn from the savings account and the interest you would pay on your credit card for the $435)​

Answer 1

if that $100 was on a loan or credit card, your debt could grow and grow until the interest you owe was more than the original principal! Credit Score or Rate. Your credit score is how well you pay off your credit .