you owe 848.42 on a credit card at a 12.75% apr the mininum payment of 50 how much goes towards the principial if you make the mininum payment at the end of the first month
if you paid the 50 at the beginning of the month to decrease the principil how much intrest accures by the end of the first month?
If you make the minimum payment of $50 at the end of the first month on a credit card balance of $848.42 with a 12.75% APR, the amount that goes towards the principal is:
$50 - ($848.42 * 0.1275 / 12) = $50 - $8.53 = $41.47
So, $41.47 goes towards the principal, and the remaining amount goes towards interest.
If you paid the $50 at the beginning of the month to decrease the principal, the interest accrued by the end of the first month would be:
($848.42 - $50) * 0.1275 / 12 = $798.42 * 0.1275 / 12 = $8.40
So, $8.40 in interest would accrue by the end of the first month.