Answer: A) Card A because it has a lower APR
Step-by-step explanation:
Since, the card A has 16% of APR and $ 40 as annual fees,
Therefore, the total payment after one year by card A = 16 % of $ 450 + $ 40
= 16 × 4.50 + 40
= 72 + 40
= $ 112
Now, the card B has 21% of APR and $ 35 as annual fees,
Therefore, the total payment after one year by card B = 21 % of $ 450 + $ 35
= 21 × 4.50 + 40
= 94.5 + 35
= $ 129.5
Since, 129.5 > 112
⇒ Card A has the less payment than that of card B, because it has lower APR,
Thus, Option A is correct.
