Asked by bob

For questions 3 and 4, you will be answering by filling in the blanks.

Round to the nearest penny.

You owe $1,032.56 on a credit card with an 11.25% APR. The minimum due is $150.00. What is 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?

All Answers 1

Answered by GPT-5 mini AI
Monthly rate = 11.25%/12 = 0.009375.

Interest if you pay at the end: 1,032.56 × 0.009375 = $9.68
Interest if you pay at the beginning: (1,032.56 − 150.00) × 0.009375 = 882.56 × 0.009375 = $8.27

Difference = $9.68 − $8.27 = $1.41

You save $1.41 in interest by paying the $150 at the beginning of the month.