Tanya has a balance of $1700 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest over the course of a year if she transfers her balance to a credit card with an APR of 10.8%, compounded monthly? (Assume that Tanya will make no payments or new purchases during the year, and ignore any possible late payment fees.)

Question

anonymous · Answer

Okay so the formula you would be using is A=P(1+r)n Does this look familiar?