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Frank has four different credit cards with the following balances and interest rates:

| Credit Card | Balance | APR |
|-------------|---------|-------|
| A | \[tex]$2,380 | 19% |
| B | \$[/tex]4,500 | 15% |
| C | \[tex]$1,580 | 17.5% |
| D | \$[/tex]900 | 21% |

Charles suggested that Frank pay off the credit cards starting with the highest balance and working his way down. If Frank chooses to follow Charles's advice, in what order should he focus on paying off his credit cards?

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

Please select the best answer from the choices provided.



Answer :

GinnyAnswer
To determine the order in which Frank should pay off his credit cards based on the highest balance first, we need to look at the balances of each credit card and then arrange them in descending order.

Here are the credit card balances:

- Credit Card A: \[tex]$2,380 - Credit Card B: \$[/tex]4,500
- Credit Card C: \[tex]$1,580 - Credit Card D: \$[/tex]900

Next, we arrange these balances from highest to lowest:

1. Credit Card B: \[tex]$4,500 2. Credit Card A: \$[/tex]2,380
3. Credit Card C: \[tex]$1,580 4. Credit Card D: \$[/tex]900

So, according to Charles' advice, Frank should pay off his credit cards in the following order: B, A, C, D.

Let's match this order with the provided choices:
a. [tex]\(D, A, C, B\)[/tex] – does not match
b. [tex]\(B, A, C, D\)[/tex] – matches
c. [tex]\(C, B, A, D\)[/tex] – does not match
d. [tex]\(A, C, D, B\)[/tex] – does not match

The best answer is:
b. [tex]\(B, A, C, D\)[/tex]

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