Question

You have two credit cards. One has a balance of $3,745.00 at a 6.25% apr and the other has a balance of $1,045.00 and is dependent upon your credit score. Your score is 500. How much total interest is accrued in the first month? Score <500 500-650 651-750 751-800 rate (apr) 12.75% 10.25% 7.5% 5.75% $28.44 $24.51 $30.41 $26.04

Answer 1

Answer:

The interest on both cards is $28.42 closest to $28.44.

Step-by-step explanation:

First card p = 3745

r = 6.25% or $6.25/12/100=0.005208$

Interest accrued in a month = $3745\times0.005208=19.50$ dollars

Second card p =1045

Card score is 500 so rate = 10.25% or $10.25/12/100=0.0085416$

Interest accrued = $1045\times0.0085416=8.92$ dollars

Hence, total interest on both cards = $19.50+8.92=28.42$ dollars, closest to $28.44

Answer 2

3745 x .0625 / 12  + 1045 x .1025 / 12 = 28.43.

$28.44 would be the closest.

Hope this helps & good luck. :)