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?



2 years ago Comment

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.