The simple interest on the balance of $3,500 is 8.88%
The simple interest on the balance of $7,500 is 7.48%
What is simple interest?
The simple interest on a credit card is the annual interest multiplied by the credit card balance, in other words, the total interest paid on both credit cards in the year under review summed up to $797.
Let us assume that simple interest on the credit card with a balance of $7500 is X
interest=$7500*X
The interest on the other credit card would be X+1.4%
interest in dollars=$3500*(X+1.4%)
total interest cost in dollars on both cards can be determined as the sum of the interest costs
total interest=$7500*X+$3500*(X+1.4%)
total interest=7500X+3500X+49
total interest=797
797=7500X+3500X+49
797=10000X+49
797-49=10000X
748=10000X
X=748/10000
X=7.48%
The simple interest on the credit balance of $7500 is 7.48%
The simple interest on the credit balance of $3,500=7.48%+1.4%
The simple interest on the credit balance of $3,500=8.88%
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