Jacob Has an Outstanding Credit Card Bill of $2000 and the Financial

Multiple Choice

Jacob has an outstanding credit card bill of $2000 and the financial institution charges a 22 percent effective annual interest rate on this outstanding balance. Jacob also has $1000 in an investment account earning eight percent per year. For effective debt management, Jacob should

A) borrow more money to invest.
B) borrow money from another financial institution and pay off the $2000 outstanding balance.
C) use the $1000 investment fund to pay down the credit card balance.
D) use the $1000 investment fund to look for potential investment opportunities with higher returns.