7
lesson pretestMultiple Choice

Pretest

Question 7 • Mathematics for Data and Financial Literacy

What effect will making minimum payments on her student loans and credit card debt have on Anisha’s net worth?

Answer
A
Her debt will decrease.
B
Her net worth will stay the same.
C
Her net worth will decrease.
D
Her debt will be reduced quickly.

Explanation

Minimum payments reduce the outstanding balances on Anisha’s student loans and credit card debt, so her total debt decreases. Because debt is a liability, paying it down increases her net worth rather than decreasing it. The debt may decrease slowly, so “reduced quickly” is not necessarily true.

AI-written and checked against the verified answer.

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