To calculate the interest accrued by the end of the first month, we first need to calculate the average daily balance on the credit card:
Balance at the beginning of the month: $848.42
Payment made at the beginning of the month: $50
Average daily balance = (848.42 * 29 + 798.42 * 2) / 31 = $833.77
Next, we calculate the daily interest rate:
Annual interest rate = 12.75%
Daily interest rate = 12.75% / 365 = 0.034932%
Finally, we can calculate the interest accrued by the end of the first month:
Interest accrued = Average daily balance * Daily interest rate * 30 days = $833.77 * 0.00034932 * 30 = $8.68
Therefore, the interest accrued by the end of the first month is approximately $8.68.
you owe 848.42 on a credit card at a 12.75% apr the mininum
if you paid the 50 at the beginning of the month to decrease the principil how much intrest accures by the end of the first month?
1 answer