Question

Shawn has 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

Answer:

Answer is D = 121.51

 

Use the Compound Interest Formula

A = P (1 + (R/12)/100)^(12*n)

 

Run 2 case

 

P = 1700

 

R = 18.7, R = 12.5

 

n = 1 (as the problem is asking over the course of a year)

 

Solve for A for both the R and subtract the two values of A to obtain ~121.51

Step-by-step explanation:

Answer 2

Answer:

85.77

Step-by-step explanation:

APEX