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iVinArrow [24]
2 years ago
13

Credit card A offers an introductory APR of 3.4% for the first 3 months and a standard apr of 15.7% thereafter, while credit car

d B offers an introductory apr of 4.2% for the first 3 months and a standard apr of 15.5% thereafter. All else being equal which of these statements is correct?
Business
2 answers:
Liula [17]2 years ago
7 0

Incomplete question. However, I answered based on the information.

Explanation:

We can determine which Credit card is best in terms of its interest rate by comparing both rates monthly:

Credit card A

<u>APR for the First 3 months:</u>

4.1% / 360 days = 0.009% x 30 = <u>0.27% </u>per month for the first 3 months.

<u>APR for Next 9 months:</u>

15.7% / 360 days = 0.04361% x 30 = <u>1.308% </u>per month for the next 9 months.

Credit card B:

<u>APR the First 3 months</u>

4.2% / 360 days = 0.011% x 30 = 0.33% per month for the first 3 months

<u>Next 9 months:</u>

15.5% / 360 = 0.04305% x 30 = <u>1.291%</u> per month for the next 9 months

Hence, we can conclude,

  • For the first 3 months, Credit Card A is best because it offers lower interest charges.
  • For the next 9 months, Credit Card B is best because it offers lower interest charges.

jeyben [28]2 years ago
6 0

Answer:

credit card A is the better deal over the course of the first 3 months and over the course of the first year

Explanation:

AP(EX

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