Bob's credit card charges him 14% interest on his unpaid balance. His bank is offering him 5% interest on a savings account. The first thing Bob should do with any extra money he may have is to:

Question

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The best choice for Bob would be to pay off his credit card balance first. This is because the interest rate on the credit card is significantly higher (14%) than the interest rate offered by the bank (5%). By paying off his credit card balance, Bob would be able to avoid paying high interest fees and reduce his overall debt. Once his credit card balance is paid off, he can then consider opening a savings account or investing in the stock market.

Bob's Credit Card Charges Him 14% Interest on His Unpaid