Homework SourseYou owe 124024 on a credit card with a 1375 APR You decide t
You owe $1,240.24 on a credit card with a 13.75% APR. You decide to pay $250.00/month toward paying off the credit card. How much is the difference in the interest paid after one month if you pay at the beginning of the month compared to paying at the end of the month?
Solution
Interest paid if interest paid after one month = 40.85
Interest paid if interest paid at the beginning = 34.04
Hence savings would be 6.01 dollars.
