Question

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 card 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?

Answer 1

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

APR for the First 3 months:

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

APR for Next 9 months:

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

Credit card B:

APR the First 3 months

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

Next 9 months:

15.5% / 360 = 0.04305% x 30 = 1.291% 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.

Answer 2

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:

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