Question

Which of the following is recommended when paying a credit card bill?

O A.
Pay the minimum amount every month.
O B. Pay exactly half the minimum amount every month.
OC. Pay more than the minimum amount every month.
OD
Pay less than the minimum amount every month.

Answer 1

Your answer is C pay more than the minimum amount every month

Answer 2

C. Pay more than the minimum amount every month.

Step-by-step explanation:

Because credit cards have very high interest rates, and the interest is compounded every day, it is recommended to pay more than the minimum amount every month, so that the total credit card bill is paid out more quickly.

What happens when you pay more than the minimum amount every month is that you are paying not only the interest and principal that is due, but you are also paying additional principal. This additional principal payment is what will reduce the amount that will need to be paid in the future.