Credit card A has an APR of 20.8% and an annual fee of $60, while credit card B has an APR of 24.6% and no annual fee. all else being equal

Credit card A has an APR of 20.8% and an annual fee of $60, while credit card B has an APR of 24.6% and no annual fee. all else being equal

 

 

answer:

C. P*(1 + 0.206/12)^12 + $60 = P*(1 + 0.246/12)^12

[The APR on P plus annual fee for A should be equal APR on P without annual fee for B]

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