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Vsevolod [243]
2 years ago
7

Daniel is looking at two different credit card offers. Credit Card A will give him an APR of 22.45%. Credit Card B will offer wi

ll be 1.25% each month. Which the better deal?
Mathematics
1 answer:
lakkis [162]2 years ago
4 0

Answer:

Credit card B is a better deal

Step-by-step explanation:

in order to compare both credit cards, we must either convert the APR into a monthly rate or the monthly rate to APR.

convert credit card A's APR to monthly rate:

= 22.45% / 12 ≈ 1.87%, which is higher than 1.25%, so credit card B is better

OR

convert credit card B's monthly rate to APR:

= 1.25% x 12 = 15%, which is lower than 22.45%, so credit card B is better

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