The opening balance of one of the 31-day billing cycles for Suzy's credit card was $7400, but after 15 days Suzy made a payment of $4900 to decrease her balance, and it stayed the same for the remainder of the billing cycle. If her credit card's APR is 22%, how much more in interest would she pay for the billing cycle with the previous balance method than with the adjusted balance method?

Question

Mathematics

Mike Mcmillan

31 January, 22:32

The opening balance of one of the 31-day billing cycles for Suzy's credit card was $7400, but after 15 days Suzy made a payment of $4900 to decrease her balance, and it stayed the same for the remainder of the billing cycle. If her credit card's APR is 22%, how much more in interest would she pay for the billing cycle with the previous balance method than with the adjusted balance method?

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Albert Bauer · Answer 1

Previous Balance = $7400*31*.0004931=$113.12

Adjusted Balance = ($7400-4900) * 31*.0004931=$38.22

She would pay $74.90 more with Previous Balance method.