Question

a) According to Debt.org the average household has $7,281 in credit card debt. Estimate how much interest the average household accumulates over the course of 1 year. We are going to assume the APR is 16.99%.b) Some credit cards off "points" or other rewards. Suppose the credit card the "average American household” used in the above question offers 1% cash back as a benefit. How does this benefit compare to the interest accumulated for the year (from the previous problem)?

Answer 1

1% of 7,281 is 72.81, you need to compare that value with the one you obtained in answer a

and say if it's greater, equal or less than that

You can do something similar to solve question a