Question

Brandi is determined to pay off her outstanding credit card debt. She has four credit cards with outstanding balances: Card 1 has $1,500 dollars on it and a 12% rate, Card 2 has $2,000 on it and an 8% rate, Card 3 has $800 on it and a 15% rate, and Card 4 has $330 dollars on it and a 22% rate. Which one should she pay off first

Answer 1

Brandi should prioritize paying off the credit card with the highest interest rate first to minimize the amount of interest she will have to pay in the long run. Therefore, she should focus on paying off Card 4 first, as it has the highest interest rate of 22%.

Step-by-step explanation:

Answer 2

Card 4 has the highest interest rate at 22%. Therefore, Brandi should focus on paying off Card 4 first. After that, she should focus on Card 3 (15% rate), then Card 1 (12% rate), and finally Card 2 (8% rate).

(the higher the interest rate, the more you’ll end up paying in interest charges)

Hope I could help!! :D