Login or Sign Up
Menu
Ask a New Question

Using a simple interest calculation, which situation would be best after one year?

(1 point)
Responses

having $3,280.00 in a savings account earning a 4.25% APR and $1,320.00 due on a credit card with a 13.5% APR
having $3,280.00 in a savings account earning a 4.25% APR and $1,320.00 due on a credit card with a 13.5% APR

having $2,013.85 on a credit card with a 9.85% APR
having $2,013.85 on a credit card with a 9.85% APR

having $524.85 on a credit card with a 8.4% APR and $790.00 in a savings account at a 4.35% APR
having $524.85 on a credit card with a 8.4% APR and $790.00 in a savings account at a 4.35% APR

having $1,040.00 on a credit card with a 4.9% APR
having $1,040.00 on a credit card with a 4.9% APR

The best situation after one year would be having $3,280.00 in a savings account earning a 4.25% APR and $1,320.00 due on a credit card with a 13.5% APR. This is because the interest earned on the savings account would outweigh the interest owed on the credit card debt, resulting in a net gain.