Question

jesse had a balance of 1200 on a credit card with an APR of 18.7% compounded monthly. About how much will he save in interest over the course of a year if he transfers his balance to a credit card with an APR of 12.5% compounded monthly?

Answer 1

Jesse saved about $85.77 in interest over the course of a year if he transfer from one credit card to another.

What is the interest accrued on savings?

The interest accrued on saving is the interest gained on saving or investment over a period of time.

ar

The amount of money saved in interest by Jesse over a period of 12 months provided that the transferred his balance to a credit card is calculated as follows:

Amount saved = $\mathbf{P_x(1 + \dfrac{r}{P_x})^{12}-P_y(1 + \dfrac{r}{P_y})^{12}}$

Amount saved = $\mathbf{1200(1 + \dfrac{18.7}{1200})^{12} - 1200(1 + \dfrac{12.5}{1200})^{12}}$

Amount saved = $85.768

Amount saved = $85.77

Learn more about interest accrued on a savings here:

brainly.com/question/1434515

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