Barney has a balance of $780 on a credit card with an APR of 31.3%, compounded monthly. About how much will he save in interest over the course of a year if he transfers his balance to a credit card with an APR of 19.1%, compounded monthly? (Assume that Barney will make no payments or new purchases during the year, and ignore any possible late-payment fees.)
Accepted Solution
A:
Barney can save $119.66 in interest over the course of a year if he transfers his balance to a credit card with an APR of 19.1%, compounded monthly. The correct answer between all the choices given is the first choice or letter A.