the tables show two ways to pay off $500 in credit card debt. which is the best option for someone who wants…

the tables show two ways to pay off $500 in credit card debt. which is the best option for someone who wants to improve his or her credit and pay less interest on the debt? credit card debt: $500 annual compound interest: 15% payment made per month: $15 total paid (44 months): $650.85 payment made per month: $100 total paid (6 months): $519.63 $15 a month because it will let the person keep more spending money $100 a month because it will free up credit to buy other things $15 a month because it will save money in the long run $100 a month because it will reduce the amount of interest paid

the tables show two ways to pay off $500 in credit card debt. which is the best option for someone who wants to improve his or her credit and pay less interest on the debt? credit card debt: $500 annual compound interest: 15% payment made per month: $15 total paid (44 months): $650.85 payment made per month: $100 total paid (6 months): $519.63 $15 a month because it will let the person keep more spending money $100 a month because it will free up credit to buy other things $15 a month because it will save money in the long run $100 a month because it will reduce the amount of interest paid

Answer

Explanation:

Step1: Analyze interest - payment relationship

The more quickly the principal is paid off, the less interest accumulates.

Step2: Compare payment amounts

Paying $100 per month pays off the debt in 6 months with a total payment of $519.63. Paying $15 per month takes 44 months and has a total payment of $650.85.

Step3: Determine the best option

Since paying $100 per month results in a lower total amount paid (less interest paid overall), it is the better option for reducing interest.

Answer:

$100 a month because it will reduce the amount of interest paid