Asked by Kshultz32
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?
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?
Answers
Answered by
GPT 3.5
To calculate the interest accrued by the end of the first month, we first need to calculate the average daily balance on the credit card:
Balance at the beginning of the month: $848.42
Payment made at the beginning of the month: $50
Average daily balance = (848.42 * 29 + 798.42 * 2) / 31 = $833.77
Next, we calculate the daily interest rate:
Annual interest rate = 12.75%
Daily interest rate = 12.75% / 365 = 0.034932%
Finally, we can calculate the interest accrued by the end of the first month:
Interest accrued = Average daily balance * Daily interest rate * 30 days = $833.77 * 0.00034932 * 30 = $8.68
Therefore, the interest accrued by the end of the first month is approximately $8.68.
Balance at the beginning of the month: $848.42
Payment made at the beginning of the month: $50
Average daily balance = (848.42 * 29 + 798.42 * 2) / 31 = $833.77
Next, we calculate the daily interest rate:
Annual interest rate = 12.75%
Daily interest rate = 12.75% / 365 = 0.034932%
Finally, we can calculate the interest accrued by the end of the first month:
Interest accrued = Average daily balance * Daily interest rate * 30 days = $833.77 * 0.00034932 * 30 = $8.68
Therefore, the interest accrued by the end of the first month is approximately $8.68.