Question

@calculusxy @soccerman

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

Answer 1

c 100%

Answer 2

Put this on google calculator,
a) 1700(1+0.242/12)^12
b) 2160.24232467
c) 1700(1+0.108/12)^12
d) 1892.96644743
e) 2160.24232467 - 1892.96644743
f) 267.27587724
g) $267.28 (rounded)

Answer 3

Medal please.

Answer 4

A

Answer 5

(S)he's wrong. I provided proof with my answer.

Answer 6

All the question is asking is to add up the interest over the course of the year by both, then subtract the higher interest by the lower interest.

Answer 7

In my equation I did this.

Answer 8

When you do this, you get the amount of money saved.

Answer 9

257.28