3. You owe $1,032.56 on a credit card with an 11.25% APR. The minimum due is $150.00. What is the difference in the interest accrued if you pay the minimum amount due at the beginning of the month versus at the end of the month?

4. Using the credit card information from Problem 3, you decide to pay $300.00 instead of $150.00 at the beginning of the month. How much do you save in interest by doubling the amount?

Question

Mathematics

Rory Castaneda

2 August, 04:05

3. You owe $1,032.56 on a credit card with an 11.25% APR. The minimum due is $150.00. What is the difference in the interest accrued if you pay the minimum amount due at the beginning of the month versus at the end of the month?

4. Using the credit card information from Problem 3, you decide to pay $300.00 instead of $150.00 at the beginning of the month. How much do you save in interest by doubling the amount?

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Answers (1)

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Liberty Cooley · Answer 1

Paybeginning $1,032 - $150 = $882.56 * 1.00938 = $ 890.84

Pay end $1,032.56 * 1.00938 = $1042.25 - $150 = $892.25

The difference is in interest in the first month 892.25-890.25=2

Note: 11.25 / 12 = 0.00938 interest per month