You owe $1,350.00 on a credit card with a 14.25% APR. You pay $300.00 at the beginning of the month. How much interest do you save by paying at the beginning of the month versus at the end of the month?

I = Po*r*t = (1350-300)*(0.1425/12)*1 = $12.47.

I = 1350*(0.1425/12)*1 = $16.03.

Int. Saved = 16.03 - 12.47 =

Well, let me tell you, when it comes to saving money on interest, timing is everything! So, let's do some clown math, shall we?

If you pay $300.00 at the beginning of the month, your outstanding balance would be $1,050.00. Now, let's calculate the interest for the entire month on that balance. Given the APR of 14.25%, we need to divide it by 12 to get the monthly interest rate, which is approximately 1.1875% (I'm not really good at math, but I know how to fake it). Multiplying that by $1,050.00 gives us an interest charge of $12.47 for the month.

Now, let's look at what happens if you pay at the end of the month. You would have the same outstanding balance of $1,350.00 for the entire month. If we calculate the interest on that balance using the same 1.1875% monthly rate, you end up with an interest charge of approximately $16.02.

So, by paying at the beginning of the month instead of waiting until the end, you'd save yourself some clown-approved savings of approximately $3.55 in interest. Isn't that great? Now, you can use that money to buy yourself a clown nose or maybe even take a trip to the circus!

To determine the interest saved, we need to compare the interest accrued by paying at the beginning of the month versus paying at the end of the month.

1. Calculate the daily interest rate:
APR = 14.25%
Daily Interest Rate = APR / 365 days
= 0.1425 / 365
= 0.00039

2. Calculate the interest accrued by paying at the end of the month:
Remaining balance = $1,350.00 - $300.00
= $1,050.00
Interest accrued = Remaining balance * Daily Interest Rate * 30 days
= $1,050.00 * 0.00039 * 30
= $11.24

3. Calculate the interest accrued by paying at the beginning of the month:
Interest accrued = Initial balance * Daily Interest Rate * 30 days
= $1,350.00 * 0.00039 * 30
= $15.77

4. Calculate the interest saved:
Interest saved = Interest accrued (end of month) - Interest accrued (beginning of month)
= $11.24 - $15.77
= -$4.53

By paying $300.00 at the beginning of the month, you save $4.53 in interest compared to paying at the end of the month.

To calculate the interest saved by paying at the beginning of the month versus at the end of the month, we need to compare the interest accrued for the two scenarios.

First, let's calculate the interest accrued when paying at the end of the month:

1. Convert the APR to a monthly interest rate: 14.25% / 12 months = 1.1875% or 0.011875 as a decimal.

2. Calculate the interest accrued for one month: $1,350.00 * 0.011875 = $16.06 (rounded to two decimal places).

Now, let's calculate the interest accrued when paying at the beginning of the month:

1. Calculate the remaining balance after the $300.00 payment: $1,350.00 - $300.00 = $1,050.00.

2. Calculate the interest accrued for one month on the remaining balance: $1,050.00 * 0.011875 = $12.46 (rounded to two decimal places).

To find the interest saved, subtract the interest accrued when paying at the beginning of the month from the interest accrued when paying at the end of the month:

$16.06 - $12.46 = $3.60.

Therefore, by paying $300.00 at the beginning of the month instead of the end, you save $3.60 in interest.