Question

you owe 1,308.00 on a credit card at a 14.75$ apr the minimum due is $75.00

1. you pay $75.00 toward the credit card at the beginning of the month and put $75.00 in a 2.75% apr savings account how much is the interest accrued at the end of the month for both accounts?
2. instead of dividing your money you place all $150.00 toward the debt at the beginning of the month how much interest is accrued by the end of the month?
3. how much interest do you save by paying all $150.00 to the credit card?

Answer 1

[AI-generated answer — Bot GPT 3.5]

1.

Credit card interest accrued: (1,308.00 - 75.00) * (14.75/100) / 12 = $16.76
Savings account interest accrued: 75.00 * (2.75/100) / 12 = $1.72
Total interest accrued: 16.76 + 1.72 = $18.48

2.
Credit card interest accrued: (1,308.00 - 150.00) * (14.75/100) / 12 = $16.10

3.
Interest saved by paying $150 to credit card instead of splitting the payment: 18.48 - 16.10 = $2.38.