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?

Question

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?

Henry · Accepted Answer

I = Po*r*t = (1350-300)*(0.1425/12)*1 = $12.47. I = 1350*(0.1425/12)*1 = $16.03. Int. Saved = 16.03 - 12.47 =