Which of the following outstanding debts should Jillian pay off first?
A) A three year loan of $5,000 at 0 percent a year from her mom.
B) A $2,000 debt on a credit card charging 18 percent annually.
C) A home equity loan of $10,000, which has an effective rate of 6 percent after her tax advantages are taken into account.
D) A student loan of $40,000 with a fixed rate of 4 percent.
B) A $2,000 debt on a credit card charging 18 percent annually.
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A trigger strategy can be used in
A) a single-play game or a repeated game. B) a single-play game but not a repeated game. C) a repeated game but not a single-play game. D) neither a single-play game nor a repeated game.
The conversion of a barter economy to one that uses money
A) increases efficiency by reducing the need to exchange goods and services. B) increases efficiency by reducing the need to specialize. C) increases efficiency by reducing transactions costs. D) does not increase economic efficiency.