Question

Credit card A offers an introductory APR of 7.6% for the first 3 months and a

standard APR of 23.4% thereafter, while credit card B offers an introductory
APR of 7.9% for the first 3 months and a standard APR of 22.9% thereafter. All
else being equal, which of these statements is correct? (Assume all interest
is compounded monthly.)

Answer 1

d. credit card a is the better deal over the course of the first 3 months, but credit card b is the better deal over the course of the first year.

Explanation: