Suppose you have a credit card with a 25.31% APR on purchases. You pay the
minimum payment by the statement due date, leaving an outstanding balance
of $3,200.
How much money would you save by paying off the balance on the 1st day of
the billing cycle as opposed to paying it off on the 30th day?
Remember that credit card interest compounds daily and use the compound
interest formula to answer this question.
A = P(+)*
Where r is in terms of years.