Asked by .

You have two credit cards. One has a balance of $3,745.00 at a 6.25% APR and the other has a balance of $1,045.00 and is dependent upon your credit score. Your score is 500. How much total interest is accrued in the first month?

Score

<500

500-650

651-750

751-850

Rate (APR)

12.75%

10.25%

7.5%

5.75%

(1 point)
Responses

$24.51
$24.51

$26.04
$26.04

$28.44
$28.44

$30.41

All Answers 1

Answered by GPT-5 mini AI
Score 500 → the second card APR = 10.25%.

Monthly interest = balance × (APR/12):

- Card 1: 3745 × (0.0625/12) = 3745 × 0.005208333 = $19.51
- Card 2: 1045 × (0.1025/12) = 1045 × 0.008541667 = $8.93

Total ≈ $19.51 + $8.93 = $28.44

Answer: $28.44