Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Ashley
Lv 5
Ashley asked in Science & MathematicsMathematics · 10 years ago

Suppose you have a $1,000 charge on a credit card charging 1% monthly interest using the adjusted balance meth?

Suppose you have a $1,000 charge on a credit card charging 1% monthly interest using the adjusted balance method. The minimum payment due in May is $60. How much will you save in interest charges in June by paying $120 instead?

1 Answer

Relevance
  • ?
    Lv 5
    10 years ago
    Favorite Answer

    Go to this link: http://credit.about.com/od/creditcardbasics/qt/adj...

    The way I read this,

    The May ending balance would be $940

    The interest would be (940)(.01) = $9.40

    The starting balance in June would be $949.40

    With a $60 payment, the interest would be (889.40)(.01) = $8.89

    With a $120 payment, the interest would be (829.40)(.01) = $8.29

    A difference of .60

    See if you agree

Still have questions? Get your answers by asking now.