Kenneth just received four credit card offers in the mail. He would like a credit card, but wants to keep the cost for borrowing as low as as possible. Based on APR, which credit card is best for Kenneth?
a. credit card A - 5% APR
b. credit card B - 15% APR
c. credit card C - 0% APR
d. credit card D - 7% APR
Based on APR, the credit card with the lowest interest rate is credit card C, which has a 0% APR. Therefore, credit card C is the best option for Kenneth as it would keep the cost for borrowing as low as possible.
To determine which credit card is best for Kenneth based on APR, we need to compare the interest rates of the four credit card offers he received:
a. Credit card A - 5% APR
b. Credit card B - 15% APR
c. Credit card C - 0% APR
d. Credit card D - 7% APR
The APR (Annual Percentage Rate) represents the annualized interest rate charged for borrowing on a credit card. A lower APR means lower borrowing costs.
Based on the rates mentioned, the best credit card for Kenneth in terms of keeping borrowing costs as low as possible would be Credit Card C with 0% APR. This means that Kenneth will not be charged any interest on his purchases, as long as he pays his balance in full within the specified time period.
However, it's important to note that the 0% APR for Credit Card C may be an introductory or promotional rate that is subject to change after a certain period. It's crucial for Kenneth to carefully read the terms and conditions of the credit card offer to understand any potential changes in the APR in the future.
Once he has all the information, Kenneth can make an informed decision about which credit card would be the best fit for his financial needs. It's also a good idea for Kenneth to consider other factors such as annual fees, rewards programs, and any other terms and conditions associated with the credit card before making a final decision.
To determine which credit card is best for Kenneth based on APR, we need to compare the different rates.
In this case, credit card C with 0% APR would be the best option for Kenneth. This means that he will not be charged any interest on his borrowing for a certain period of time (usually an introductory period) specified by the credit card company. This can help Kenneth keep his borrowing costs as low as possible in the short term.
However, it is important to note that the 0% APR may only be applicable for a limited time, after which it will likely increase. Therefore, Kenneth should also consider other factors such as any annual fees, rewards or benefits, and the standard APR after the introductory period when deciding which credit card to choose.