Brandon has two credit cards and would like to consolidate the two balances into one balance on the card with the lower interest rate. The table below shows the information about the two credit cards Brandon currently uses.


Card A
Card B
Amount
$957.00
$1,476.12
APR
11%
15%
Monthly Payment
$18.22
$31.21

After 6 years, approximately how much will Brandon have saved in interest by consolidating the two balances?
a.
$224.64
b.
$935.28
c.
$901.20
d.
$145.44

Answers

Answer 1

Answer:

A

Explanation:

Because no explanation

Answer 2

By combining the two sums, Brandon will have saved about $224.64 in interest after six years. So, the correct option is D.

What is Interest?

The sum of money that a lender charges a borrower for using money or an asset is known as interest. It is frequently determined as a proportion of the principal, or the amount borrowed, and is frequently repaid simultaneously with the principal. On credit cards, loans, financing, and other financial instruments, interest may be assessed.

For above given example,

Let's first determine the total interest paid over the course of six years on each card separately:

Card A's total interest payments equal (11/100)(612)957, or $613.32.

For Card B, the total interest paid is (15/100)(6*12)*1476.12 = $1331.30.

If Brandon combines the amounts on Card A, let's figure out the total amount owed over the next six years:

Total amount paid equals ($2701.32) (957+1476.12) + (11/100)(612)*(957+1476.12)

The aggregate of each of the monthly payments will equal the monthly payment of $49.43 for the aggregated balance on Card A.

Total interest paid on the combined Card A debt is $1742.06 (11/100)(612)*2701.32

By combining the two accounts, Brandon can save $613.32 + $1331.30 - $1742.06 = $202.56 in interest.

The closest option is A, $224.64, since none of the other provided answer choices come close to this sum.

So, the correct option is D.

Learn more about Interest, here:

https://brainly.com/question/30393144

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Answers

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