Question

Greg used his credit card to buy exercise equipment. the cost was $826.38. if greg pays $50 a month for 20 months, the total interest will be $139.33. greg decided instead to pay only the minimum amount each month. that will take him 124 months and the total interest will be $1,038.08. how much would greg have saved if he had paid $50 a month instead of the minimum amount?

Answer 1

Greg would save $898.75 by opting to pay $50 a month compared to the minimum payments over an extended period due to lower total interest paid.

Step-by-step explanation:

Greg would save money by opting to pay a fixed amount of $50 a month instead of the minimum payment on his credit card debt. Calculating his savings involves comparing the total interest paid under both repayment plans. The total interest paid when paying $50 a month for 20 months comes to $139.33. In contrast, paying the minimum payment over 124 months results in $1,038.08 in total interest.

To find out how much Greg would save, subtract the total interest paid with $50 monthly payments from the total interest paid with the minimum payments: $1,038.08 - $139.33 = $898.75. Therefore, Greg would save $898.75 by paying $50 a month instead of the minimum payment.

Answer 2

he would have saved 898.75 if he would have payed the 50