Final answer:
Interest rates on credit cards can vary widely and typically range from 12% to 18% per year. They are not fixed and can change based on various factors. Carrying a balance incurs monthly interest, which can add significantly to the overall debt.
Step-by-step explanation:
The question 'Interest rates on credit cards can be paid annually. a. Change with the balance. b. Decrease with early payment. c. Can vary widely. d. Stay constant.' relates to how credit card interest rates are handled. The correct answer to this question is 'c. Can vary widely.' Credit card interest rates are known to be quite diverse, with typical annual rates ranging from 12% to 18%. Moreover, these interest rates are not typically fixed; they can vary based on various factors such as the cardholder's creditworthiness, the market, and the issuer's policies.
When you carry a balance on your credit card, you incur interest charges every month. This amount is calculated by multiplying your balance by the interest rate. It's also important to note that making early payments can reduce the overall interest but doesn't necessarily decrease the rate itself. Furthermore, while some credit cards may offer a period of interest-free borrowing, this is not always the case.