To find the difference in interest accrued when paying the minimum due at the beginning of the month versus the end of the month, we will first need to calculate the interest accrued for both scenarios.
1. Pay Minimum Due at the Beginning of the Month
If you pay the minimum due ($150) at the beginning of the month, the remaining balance for the month will be:
\[ \text{Remaining balance} = 1032.56 - 150 = 882.56 \]
Next, we calculate the monthly interest on this remaining balance. The annual percentage rate (APR) is 11.25%, so the monthly interest rate is:
\[ \text{Monthly interest rate} = \frac{11.25%}{12} = \frac{0.1125}{12} \approx 0.009375 \]
Now we can calculate the interest accrued on the remaining balance for the month:
\[ \text{Interest accrued} = 882.56 \times 0.009375 \approx 8.267 \]
Thus, the interest accrued when paying the minimum due at the beginning of the month is approximately $8.27.
2. Pay Minimum Due at the End of the Month
If you pay the minimum due at the end of the month, the entire balance of $1032.56 is subject to interest for the month. Therefore, the interest accrued is calculated on the full balance:
\[ \text{Interest accrued} = 1032.56 \times 0.009375 \approx 9.693 \]
So, the interest accrued when paying the minimum due at the end of the month is approximately $9.69.
3. Calculate the Difference in Interest
Finally, we can find the difference in interest accrued between paying at the end of the month and paying at the beginning:
\[ \text{Difference} = 9.69 - 8.27 \approx 1.42 \]
Thus, the difference in the interest accrued if you pay the minimum amount due at the beginning of the month versus at the end of the month is approximately $1.42.