Question

Interest accrues more quickly with ___ credit debt.
A. high interest and high balance
B. high interest and low balance
C. low interest and high balance
D. low interest and low balance

Answer 1

I think the correct answer would be high interest and high balance. Interest would tend to increase more quickly as time pass by if it has high value and the balance is high as well. Hope this answers the question.

Answer 2

If the value of the balance is high then the interest will be high. Then the correct option is A.

What is APR?

APR on a credit card is the way of saying that the interest you are charged over a year is equal to roughly your balance.

We know that the formula of APR is given as

$\rm A = P(1+APR)^t$

Where

A = amount

P = principal

APR = rate of interest

t = time

We know that the interest is directly proportional to the principal. Then if the value of the balance is high then the interest will be high.

More about the APR link is given below.

https://brainly.com/question/8846837