Question

Which of the following credit cards offers the lowest MONTHLY interest rate? *Canadian Express (19.9 % per year) *Virtual School Gold Card (1.67 % interest per month) *Bank of Brennan Super Credit Card (4.99 % every 3 months)

a) Virtual School Gold Card
b) Bank of Brennan Super Credit Card
c) Canadian Express
d) Bank of Brennan Super Credit Card & Canadian Express

Answer 1

Answer: a) Virtual School Gold Card

Step-by-step explanation: To compare the monthly interest rates of the three credit cards, we need to convert the annual and quarterly rates to monthly rates.

For Canadian Express, the monthly interest rate is 19.9% / 12 = 1.6583%.

For Virtual School Gold Card, the monthly interest rate is 1.67%.

For Bank of Brennan Super Credit Card, the monthly interest rate is (4.99% / 4) = 1.2475%.

Therefore, the Virtual School Gold Card offers the lowest monthly interest rate at 1.67%.