Question

Tim would like to use his income tax return to pay off one of his four credit cards. His previous plan was to pay off all four credit cards in the same timeline of 36 months. He wants to eliminate the card that is charging him the most interest on a monthly basis. The chart below outlines Tim's four credit cards, their balances, and their APRs. Which credit card should Tim use his tax return to pay off?

Credit Card
Balance
APR
A
$1,260.00
12%
B
$900.00
18%
C
$1,290.00
9%
D
$1,200.00
16%

a.
A
b.
B
c.
C
d.
D

Answer 1

D

Step-by-step explanation:

Answer 2

THE ANSWER IS D

Step-by-step explanation:

The credit card that charges the most interest per month is the D. The final balance will be $1392 as the interest rate of 16%would add up to the initial credit balance of $1.200 a Intertest of $192