The opening balance of one of the 31-day billing cycles for Clay's credit card was $3300, but after 15 days Clay made a payment of $1900 to decrease his balance, and it stayed the same for the remainder of the billing cycle. If his credit card's APR is 28%, how much more in interest would he pay for the billing cycle with the previous balance method than with the adjusted balance method?

Question

Alanna0310 · Answer

Help Please!!

tigerlover · Answer

Hello and Welcome to QuestionCove! My names tigerlover and I am here to help with what I can. ^^

tigerlover · Answer

Given:
31 days = 7,400
15 days = payment of 4,900
16 days = 7,400 - 4,900 = 2,500

Method 1: 
7,400 * 22% * 31/365 = 138.27

Method 2: adjusted balance
7,400 * 22% * 15/365 =  66.90
2,500 * 22% * 16/365 =  24.11
66.90 + 24.11 =  90.21

138.27 - 90.21 = 48.06

She would pay 48.06 more with the previous balance method than with the adjusted balance method.
How about giving this a try? ^u^

Alanna0310 · Answer

Hey!! and ok cool thanks!!