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?

Question

saifoo.khan · 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

saifoo.khan · Answer

I copied from somewhere! :D

anonymous · Answer

lol

saifoo.khan · Answer

Haha.
To be honest, i dont like this topic.

anonymous · Answer

so i saved 2.66 ?

saifoo.khan · Answer

Yes

anonymous · Answer

i dont either but i was failing at geometry so i took this instead not knowing how difficult it was lol

saifoo.khan · Answer

geometry is better than this.

anonymous · Answer

i know but i was failing and didnt want my gpa to go below a b- lol

saifoo.khan · Answer

Oh. lol.
best of luck with this pain. ;)

anonymous · Answer

lol i  am gonna need alot more than luck lol

saifoo.khan · Answer

Lol.. that's all i can help. hehe