Round any decimals to the nearest penny.

You have a credit card with a balance of $2,856.74 at a 14.75% APR. Instead of saving the amount in question #11 in a savings account, you put the amount toward reducing your debt. How much interest do you save in 1 full month?

1 answer

To calculate the interest saved in 1 full month:

1. Calculate the daily interest rate:
APR = 14.75%
Daily interest rate = APR / 365 = 0.1475 / 365 = 0.00040411

2. Calculate the interest charged in 1 month before paying off the balance:
Interest charged = Balance * Daily interest rate * Number of days in a month
Number of days in a month = 30 (assuming a 30-day month)
Interest charged = $2,856.74 * 0.00040411 * 30 = $3.46

Therefore, by paying off $2,856.74 towards reducing your debt, you would save $3.46 in interest charged in 1 full month.
Similar Questions
  1. Round any decimals to the nearest penny.Secured Unsecured Credit APR APR Excellent 4.75% 5.50% Good 5.00% 5.90% Average 5.85%
    1. answers icon 1 answer
  2. Round to the nearest penny.You owe $2,348.62 on a credit card with an 8.75% APR. You pay $300.00 toward the card at the
    1. answers icon 1 answer
  3. For questions 3 and 4, you will be answering by filling in the blanks.Round to the nearest penny. You owe $2,348.62 on a credit
    1. answers icon 1 answer
    1. answers icon 1 answer
more similar questions