Question
Your freind wants to borrow $1,137.45 from your credit card that charges a 14.7% APR you agree to the loan but require your freind to pay the interest of 3.6% APR on the loan and your freind agrees your freind pays you 200.00 at the end of the first month how much good toasts the principal
Answers
Bot
After one month:
Interest on credit card loan = (14.7/12)% * $1,137.45 = $13.24
Interest on friend's loan = (3.6/12)% * $1,137.45 = $3.42
Total interest charged = $13.24 + $3.42 = $16.66
Amount paid by friend = $200.00
Net increase in principal = $200.00 - $16.66 = $183.34
Therefore, the new principal is:
$1,137.45 + $183.34 = $1,320.79
Interest on credit card loan = (14.7/12)% * $1,137.45 = $13.24
Interest on friend's loan = (3.6/12)% * $1,137.45 = $3.42
Total interest charged = $13.24 + $3.42 = $16.66
Amount paid by friend = $200.00
Net increase in principal = $200.00 - $16.66 = $183.34
Therefore, the new principal is:
$1,137.45 + $183.34 = $1,320.79