ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Which Debt Should You Pay Off First? Let’s cut straight to it: If you’ve got multiple debts, pay off the smallest debt first. That’s right-most “experts” out there say you have to start by paying on the debt with the highest interest rate first.
Detailed explanation-2: -Improve credit scores And the lower your credit card balance, the lower your credit utilization. So paying off credit card debt consistently and on time can help your credit scores. And as your credit scores improve, it can make it easier to qualify for better interest rates and other loans, such as mortgages.
Detailed explanation-3: -Interest is the cost of borrowing money. The borrower pays interest, and the lender receives it.
Detailed explanation-4: -Pay more than the minimum. Pay more than once a month. Pay off your most expensive loan first. Consider the snowball method of paying off debt. Keep track of bills and pay them in less time. Shorten the length of your loan. Consolidate multiple debts.