You have a credit card with a balance of $2,856.74 at a 14.75% APR. Instead of saving the amount in question #11 in a savings account, you put the amount toward reducing your debt. How much interest do you save in 1 full month?

Question

anonymous · Answer

someone pleaseee help

anonymous · Answer

the amount in question 11 is $629.63

tkhunny · Answer

Why isn't it the interest at 14.75% on the $629.63?

e.mccormick · Answer

The concept involved is seen how much less interest is paid.  That is how much is saved.

What you need to do is find the interest on the $2,856.74 and the interest on the difference of ($2,856.74 - $629.63) over one month.  Then you subtract the second answer from the first and you will know how much you have saved.

tkhunny · Answer

In other words, since there is no compounding, it's the interest on $629.63 at 14.75%