Frank has four different credit cards, the balances and interest information of which are outlined in the table below. As Frank was developing a debt payment plan, Rick suggested that he pay off the credit cards beginning with the highest interest rate, working his way down. If Frank chooses to follow Rick’s advice, in what order should Frank plan on paying off his credit cards?Credit CardBalanceAPRA$2,380 19%B$4,500 15%C$1,580 17.50%D$900 21%
Following Rick’s advice means paying the card with the highest APR first, then continuing in descending order. The rates are D at 21%, A at 19%, C at 17.5%, and B at 15%, so the payoff order is D, A, C, B. This matches choice a.
AI-written and checked against the verified answer.