1. You owe $2,348.62 on a credit card with an 8.75% APR. You pay $300.00 toward the card at the beginning of the month and another $300.00 in a savings account at a 3.25% APR. What is the difference in interest accrued if you had paid $600.00 toward the card instead of $300.00? 2. Using the information from Problem 1, how many months will it take you to pay off your debt if you pay at least $600.00 at the beginning of each month? Include the last month even if the payment is less than $600.00.I don't understand these questions, please explain them to me?
Accepted Solution
A:
Part 1:
After payment of $300, remaining balance = $2,348.62 - $300 = $2,048.62. Interest accrued is given by: