Question

You charge $500 on each of your two credit cards. One is American Express with an

interest rate of 15.99%. The other is Chase Sapphire with an interest rate of 20.99%.
Assuming that you are only making the minimum payment of $25 to each of the
credit card companies, which card will you pay off first?
Chase Sapphire
American Express
Interest Rate does not affect your minimum payments.
All of the above

Answer 1

Answer: Interest Rate does not affect your minimum payments

Explanation:

Your format is kind of confusing, or maybe the question's wording is just confusing.

Anyways, interest works something like this:

If you put an amount of cash into a bank, every year or month, a percentage of the cash in the bank is added to your cash. For example, if you put 500 dollars in your bank, and the compound interest (meaning that it stacks) is 1% per year, after 1 year, you will have 505 dollars. It's hard to explain, but for the answer:

Minimum payment is not effected at all by interest.