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): $65a. 85
$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 debt
owed
Payment made per month: $100
Total paid (6 months): $519.63
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