Cynthia has a full-time job, participates in her employer's 401(k) plan, invests $50 every month in a retirement
account, and after paying bills usually puts anywhere from $50 to $200 in her money market account at her bank.
Her money market account has a balance of $7,000 that pays 2% interest. She has a car payment of $225 a month
and owes $2,000 on her 7% interest car loan. What would be a good option for Cynthia to make the most of her
finances?
She does not need to make any changes to her financial plan.
She should pay off her car loan from her money market to give her more options for savings.
She should add $50 per month to her car payment to pay the loan off a little early to give her more options for savings.
She should add $50 per month to her retirement savings to take advantage of its higher returns.