The table summarizes the credit card debt Michael currently holds. Use this table to answer the question that follows.
Credit Card
Balance
APR
Minimum Payment
Total Interest Paid
Number of Months to Pay off
Home Improvement Card $2,500 23.4% $100 $2,095 125
Wear-It-Right Card $2,257 22.1% $79 $2,195 140
Furniture Depot Card $3,850 16% $154 $1,822 117
Expert Card $3,572 20.3% $125.02 $3,016 154
Which credit card should receive the highest payment if Michael were going to snowball his debt according to the balance?
My answer is A
Home Improvement Card.
To determine which credit card should receive the highest payment if Michael were going to snowball his debt according to the balance, you need to compare the balances of the different credit cards. The credit card with the highest balance should receive the highest payment.
Looking at the table provided, we can see the following balances for each credit card:
- Home Improvement Card: $2,500
- Wear-It-Right Card: $2,257
- Furniture Depot Card: $3,850
- Expert Card: $3,572
The credit card with the highest balance is the Furniture Depot Card, with a balance of $3,850. Therefore, if Michael were going to snowball his debt according to the balance, the highest payment should be directed towards paying off the Furniture Depot Card.