Abby has the option of using her credit card, which has compound interest of 10%, for a $5,000 expense. She also
sees an offer for a personal loan of $5,000, with 10% simple interest. Why might the loan be a better deal?
O The personal loan will end up costing only $5,000 in the end, while the credit card will cost more.
O If Abby opens an additional line of credit with the personal loan, her credit score will improve.
With simple interest, the interest will not accumulate if Abby does not pay the loan off quickly.
O Personal loans do not have payment deadlines the same way that credit cards do.