type of loan balance interest rate\nmortgage $100,000 3%\nstudent loan $8,000 6%\nauto loan $15,000 7%\nif…

type of loan balance interest rate\nmortgage $100,000 3%\nstudent loan $8,000 6%\nauto loan $15,000 7%\nif you are following the snowball method, which loan should you pay off first?\nchoose 1 answer:\na mortgage\nb auto loan\nc student loan

type of loan balance interest rate\nmortgage $100,000 3%\nstudent loan $8,000 6%\nauto loan $15,000 7%\nif you are following the snowball method, which loan should you pay off first?\nchoose 1 answer:\na mortgage\nb auto loan\nc student loan

Answer

Answer:

C. student loan

Brief Explanations:

The snowball method focuses on paying off the smallest - balance debt first. Among the given loans, the student loan has the smallest balance ($8,000), while the mortgage has a balance of $100,000 and the auto loan has a balance of $15,000. By paying off the student loan first, it gives a psychological boost (as a quick win) and frees up more money to pay off larger debts later.