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qwelly [4]
2 years ago
7

Susan has a credit card balance of $4000. Her annual interest rate is 18%. If she pays $366.72 a month she will pay the balance

off in 1 year. If she pays $199.70 a month she will pay the balance off in 2 years. What is the overall financial benefit of Susan paying the credit card balance off in 1 year instead of 2?
Mathematics
1 answer:
vovikov84 [41]2 years ago
4 0
<h3>Answer:</h3>

$392.16 in interest saved

<h3>Step-by-step explanation:</h3>

The payoff in 1 year costs a total of 12 × $366.72 = $4400.64.

The payoff in 2 years costs a total of 24 × $199.70 = $4792.80.

Paying off the balance in 1 year saves interest charges of ...

... 4792.80 -4400.64 = $392.16


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