You have a car loan at a 8% per year interest,school loans averaging 3% per year interest,credit card debt at 14% per year interest,and you are investing in a fund in which you are earning 7% per year.If you have excess cash flow of $200 per month,prioritize where you should make accelerated payments or invest the cash to optimize the financial result.
A) Credit card debt, car loan, investment, school loan
B) Investment, car loan, school loan, credit card debt
C) Investment, school loan, credit card debt, car loan
D) Always put excess cash to use in an investment

Question

Quizplus · Accepted Answer

Credit card debt has the highest interest rate at 14%, so it should be prioritized first to minimize interest payments. After that, the car loan at 8% should be addressed, followed by investment and school loans.

You Have a Car Loan at a 8% Per Year