Question

@Euler271 @Mertsj @jim_thompson5910 @primeralph

Melanie 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 Melanie will make no payments or new purchases during the year and ignore any possible late payment fees.)

A. $202.61
B. $267.28
C. $152.51
D. $314.28

Answer 1

\[A=1700(1+\frac{.242}{12})^{12}\]
\[A=1700(1+\frac{.108}{12})^{12}\]

Answer 2

Calculate those and subtract the answers.

Answer 3

ok

Answer 4

b

Answer 5

@Mertsj

Answer 6

@iambatman @Euler271 @chaylacryder

Answer 7

yes