1. you owe $2,348.62 on a credit card with an 8.75% apr. you pay $300.00 toward the card at the beginning of the month and another $300.00 in a savings account at a 3.25% apr. what is the difference in interest accrued if you had paid $600.00 toward the card instead of $300.00? 2. using the information from problem 1, how many months will it take you to pay off your debt if you pay at least $600.00 at the beginning of each month? include the last month even if the payment is less than $600.00. i don't understand these questions, explain them to me?

Part 1:

After payment of $300, remaining balance = $2,348.62 - $300 = $2,048.62.
Interest accrued is given by:



Had it been $600 was paid, remaining balance = $2,348.62 - $600 = $1748.62. Interest accrued is given by:



Difference in interest accrued = $14.94 - $12.75 = $2.19

Part 2:

The present value of an annuity is given by:



Where PV is the amount to be repaid, P is the equal monthly payment, r is the annual interest rate and n is the number of years.

Thus,



Therefore, the number of months it will take to pay of the debt is 3.99 months which is approximately 4 months.