Question

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?

Answer 1

Given:
31 days = 7,400
15 days = payment of 4,900
16 days = 7,400 - 4,900 = 2,500

Method 1: 
7,400 * 22% * 31/365 = 138.27

Method 2: adjusted balance
7,400 * 22% * 15/365 =  66.90
2,500 * 22% * 16/365 =  24.11
66.90 + 24.11 =  90.21

138.27 - 90.21 = 48.06

She would pay 48.06 more with the previous balance method than with the adjusted balance method.

Answer 2

The answer is actually $91.56