Answered

You owe $2,154.35 on your PBnJ credit card that has an interest rate of 9.85% APR. Rather than placing $435.00 into a savings account earning a 2.5% APR, you pay down the principal at the beginning of the month on the credit card. How much interest did you save?

Verified Answer :

First, calculate the difference in the interest rates. 9.85% - 2.5% = 7.35%. One month's worth of interest is 1/12 of that yearly rate, so 7.35%/12 = 0.6125% monthly. Then multiply that by the $435. $435 * 0.6125% = $2.66 

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!

lhmarianateixeira

In this exercise we have to use the knowledge of finance to calculate the rate value, so we find that:

Was saved $2.66.

organizing the information given in the statement we have that:

  • You owe $2,154.35 on your PBnJ credit card
  • interest rate of 9.85% APR.
  • placing $435.00 into a savings
  • pearning a 2.5% APR.

So to calculate this value we have:

\(9.85\% - 2.5\% = 7.35\%\\7.35\%/12 = 0.6125\% \\\$435 * 0.6125\% = \$2.66\)

See more about finances at brainly.com/question/10024737

Related Questions