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After Reviewing Brenda's Current Financial Situation, Ronald, Her Friend, Assesses

Question 2

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After reviewing Brenda's current financial situation, Ronald, her friend, assesses that she has an unpaid credit card balance of $4,500, on which an annual percentage rate of 15% is applicable. In this case, the best advice Ronald can give Brenda is to:


A) increase the annual percentage rate on her credit cards.
B) switch credit card companies as many companies offer benefits such as frequent-flier miles.
C) keep using the card and not to worry about the balance because all interest is tax deductible.
D) place a high priority on eliminating her credit card balance as quickly as possible.

Correct Answer:

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