Balance on credit card = 1700
We use compound interest formula
A = [tex] P (1+ \frac{r}{n} )^{n*t} [/tex]
Where P -> principal amount
r -> rate of interest
t-> years
n - > compounding period (monthly=12)
We consider two cases
Case 1: P= 1700, r=24.2%= 0.242 , t=1 , n= 12
Apply the formula , A =[tex] \[1700 (1+ \frac{0.108}{12} )^{12*1}\] [/tex]
= 2160.2423
Case 2: P= 1700, r=10.8%= 0.108 , t=1 , n= 12
Apply the formula , A =[tex] \[1700 (1+ \frac{0.108}{12} )^{12*1}\] [/tex]
= 1892.9664
Amount she saves = 2160.2423 - 1892.9664
= 267.2759
Interest saved = $267.28
Answer: 267.28
Step-by-step explanation: Good luck on the rest of your APEX quiz!
