John is considering pursuing one of two credit cards. Credit card "A" has no annual fee and charges an interest rate of 12.5%. Credit card "B" has an annual fee of $45 but charges an interest rate of 9%
If John is likely to have an average credit card balance of $2,000, the lowest annual expenses John could have with one of these two cards would be
A) $225.
B) $180.
C) $250.
D) $240.
Answer: A
Explanation: A)
Credit card "A": $2000 × .125 = $250
Credit card "B": $2000 × .09 = $180 + $45 = $225
Business
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