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30 March, 07:20

The balance on Taylor's credit card is $2000 it has an interest rate of 12.5% she wants to compare the difference between paying $75 and $100 of the monthly balance how much does she save in interest and fees if she pays $100 instead of $75?

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  1. 30 March, 07:33
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    so she saved 82 cents in the interest the month after

    Step-by-step explanation:

    case 1: payment is $75

    interest on 2000 = 0.125/12*2000 = $20.83

    so the actual repayment on the balance = (75-20.83) = $54.17

    therefore, balance = $ (2000-54.7) = $1945.83

    interest in the next month = $20.27

    case 2: payment is $100

    interest on 2000 is still $20.83

    repayment = $79.73

    balance = $1920.27

    interest in the next month = 20.01

    so she saved 82 cents in the interest the month after
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