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aleksklad [387]
3 years ago
9

You owe $2,348.62 on a credit card with an 8.75% APR. You pay $300.00 toward the card at the beginning of the month. What is the

difference in interest accrued compared with if you had paid an additional $300.00 more than you had originally intended toward the card?
Using the information from the previous question, how many months will it take you to pay off your debt if you pay $600.00 at the beginning of each month? Include last month even if payment is less than $600.00
Mathematics
1 answer:
Svetach [21]3 years ago
8 0
For the first question;
To calculate the interest accrued from the total amount and compare it from the $300 that is initially paid for the card, there's a need to get 8.75% from $2,348.62. This is possible by multiplying $2,348.62 by 0.0875, which will give a result of $205.50. So it's difference from $300 is $94.50.

For the second question;
Given the interest is $205.50, it needs to be added to the total amount which generates a result of $2554.12. Next, deduct $300 from it for the payment made in the previous month, and divide it by $600. This will result to an answer of 3.76 - the number of months to pay off the debt.
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