you owe 848.42 on a credit card at a 12.75% apr the mininum
if you paid the 50 at the beginning of the month to decrease the principil how much intrest accures by the end of the first month?
how much intrest do you save by paying at the beginning of the month
To calculate the interest accrued at the end of the first month, we first need to calculate the new balance after making a payment of $50 at the beginning of the month.
New balance = $848.42 - $50 = $798.42
Monthly interest rate = 12.75% / 12 = 1.0625%
Interest accrued = $798.42 * 1.0625% = $8.48
Therefore, the interest accrued at the end of the first month is $8.48.
To calculate how much interest you save by paying at the beginning of the month, we need to compare the interest accrued with and without the payment.
Interest accrued without payment = $848.42 * 1.0625% = $9.03
Interest saved = $9.03 - $8.48 = $0.55
Therefore, you save $0.55 in interest by paying $50 at the beginning of the month.