You owe $976.34 on a credit card that has an interest rate of 10.75% apr. you pay $100.00 at the end of each month. 3. calculate the difference between the interest accrued by a $976.34 balance on the credit card and what $100.00 would earn in a savings account that has an interest rate of 2.75% apr over the span of one month.

Given

Balance on credit card = $976.34

Interest accrued by the balance = 10.75%

Payment each month = $100.00

Interest rate for saving account = 2.75%

Find the difference between the balance and the interest rate of the balance.

Find the earnings of the saving account

Solution

1.

$976.34 x. 1075 = $104.96

$976.34 - $104.96 = $871.38

The result is $871.38 and this is the difference between the balance on the credit card and the interest rate.

2. $100.00 x. 0275 = 2.75

In the span of one month the saving account may $2.75 base on the $100.00