Question

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.

Answer 1

your method was incorrect.

the correct answer is:

interest accrued per month: 976.34*10.75/100*1/12= $8.75

interest from savings account: $100 * 2.75/100 *1/12 = $.23

3.difference is: 8.75 - . 23= $8.52 (answer)

4. amount towards principal after $100 payment is ($100-$8.75)= $91.25(answer)