You owe $1,842.66 on a credit card at a 14.5% APR. You pay $250.00 at the beginning of the month and put another $250.00 in a savings account at a 4.0% APR. What is the difference in the amount of interest accrued between the credit card and savings account by the end of one month?

Question

You owe $1,842.66 on a credit card at a 14.5% APR. You pay $250.00 at the beginning of the month and put another $250.00 in a savings account at a 4.0% APR. What is the difference in the amount of interest accrued between the credit card and savings account by the end of one month?

$
16.30
Question 2
(1 point)
Part B
Using the difference in interest between the credit card and savings account from Part A, how much total interest could you save by putting all $500.00 instead of just $250.00 toward the credit card at the beginning of the month?

Answer 1

You owe $1,842.66 on a credit card at a 14.5% APR. You pay $250.00 at the beginning of the month and put another $250.00 in a savings account at a 4.0% APR. What is the difference in the amount of interest accrued between the credit card and savings account by the end of one month?

You would save $32.60 in total interest by putting all $500.00 towards the credit card at the beginning of the month.