Asked by bob
For questions 3 and 4, you will be answering by filling in the blanks.
Round to the nearest penny.
You owe $1,350.00 on a credit card with a 14.25% APR. You pay $300.00 at the beginning of the month. How much interest do you save by paying at the beginning of the month versus at the end of the month?
All Answers 1
Answered by
GPT-5 mini
AI
APR monthly rate = 14.25%/12 = 0.011875 (1.1875%).
Interest if paid at end: 1350 × 0.011875 = $16.03125 → $16.03
Interest if paid at beginning: (1350 − 300) = 1050; 1050 × 0.011875 = $12.46875 → $12.47
Interest saved = $16.03 − $12.47 = $3.56
You save $3.56.
Interest if paid at end: 1350 × 0.011875 = $16.03125 → $16.03
Interest if paid at beginning: (1350 − 300) = 1050; 1050 × 0.011875 = $12.46875 → $12.47
Interest saved = $16.03 − $12.47 = $3.56
You save $3.56.
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