Question

Which of the following is the best financial situation?
A. You have saved enough for your emergency fund and have $2,358.96 on a credit card at a 3.5% APR
B. You have saved enough for your emergency fund and are paying off your credit card debt
C. You have not saved enough for your emergency fund and have $538.98 on a credit card at 9.8 APR
D. You have not saved enough for your emergency fund and are paying off your credit card debt

Answer 1

@mathmate @Vuriffy

Answer 2

Looks like A is the most logical answer!

Answer 3

@steve816 I agree, I think it's either A or B. But why is A a better answer than B?

Answer 4

It's subjective. It depends on your financial goals and your future outlook. There is not NEARLY enough information given.

Answer 5

Because you have $2,358.96 on a credit card at a 3.5% APR which means more money.

Answer 6

Might be a stupid question but isn't that debt on the credit card?

Answer 7

@tkhunny I think the question is really asking about how much money you currently will have.

Answer 8

Sorry, I am actually not sure @dinorap1 I don't have much financial knowledge! It is either A or B for sure though.

Answer 9

If it is "really asking" that, then it should say that. Mathematics questions at this level should be precise and unambiguous.

B and D are just silly. They say NOTHING of the SIZE of your Credit Card debt.

C and D are just silly. There is little doubt your Consumer Math folks will place VERY HIGH value in the adequate emergency fund.

Answer 10

I think B is too vague to be the right answer. But I'm not sure. They both still look like they could be right. A IS talking about debt, I'm pretty sure.

@tkhunny
In this question I'm pretty sure the goal is to have saved for an emergency fund and have the least amount of debt to pay off. So C and D are pretty much wrong.

Answer 11

If I were you, I'd go with A

Answer 12

APR means money owed, but it is only 3%, and you already have over $2000 on your credit card, so A is the most logical answer.

Answer 13

@tkhunny Would you say since B and D are so vague you can just assume they're wrong?

@steve816 You're most likely right. I changed my answer from B to A.

Answer 14

No, not vague, but entirely missing important information. What is the SIZE of the debt you are paying off?

Answer 15

@tkhunny Since they have no important information could I just assume they're wrong then?

Answer 16

Yes.