Answer :
Let's clarify the given information based on the data provided in the question:
We are comparing credit card A with some other credit card(s) based on interest rate and annual fee to determine why credit card A might be the better option. We need to analyze the statements to decide which one properly explains why credit card A is better.
Let's examine each option given:
1. It has the highest interest rate, but the lowest annual fee.
- This statement indicates that credit card A has the highest interest rate, but its annual fee is lower compared to others. Based on the table, the annual fee for credit card A is \$25.
2. It has the lowest interest rate and annual fee after the first year.
- Based on the table, the interest rate for credit card A is 14.95%. This option implies that there might be another credit card with a higher interest rate or a higher annual fee after the first year.
3. It has the lowest interest rate for the first year and no annual fee.
- According to the table, credit card A has an annual fee of \$25, so this statement is incorrect, as there is not "no annual fee."
4. It has the lowest annual fee for the first year and the lowest interest rate.
- The table shows the annual fee is \$25. We need to verify whether this is the lowest available fee and confirm that the interest rate of 14.95% is the lowest in comparison.
Given the information, the most applicable statement is:
- It has the highest interest rate, but the lowest annual fee.
This thoroughly explains the advantage of credit card A over others since its primary benefit lies in having the lowest annual fee.
We are comparing credit card A with some other credit card(s) based on interest rate and annual fee to determine why credit card A might be the better option. We need to analyze the statements to decide which one properly explains why credit card A is better.
Let's examine each option given:
1. It has the highest interest rate, but the lowest annual fee.
- This statement indicates that credit card A has the highest interest rate, but its annual fee is lower compared to others. Based on the table, the annual fee for credit card A is \$25.
2. It has the lowest interest rate and annual fee after the first year.
- Based on the table, the interest rate for credit card A is 14.95%. This option implies that there might be another credit card with a higher interest rate or a higher annual fee after the first year.
3. It has the lowest interest rate for the first year and no annual fee.
- According to the table, credit card A has an annual fee of \$25, so this statement is incorrect, as there is not "no annual fee."
4. It has the lowest annual fee for the first year and the lowest interest rate.
- The table shows the annual fee is \$25. We need to verify whether this is the lowest available fee and confirm that the interest rate of 14.95% is the lowest in comparison.
Given the information, the most applicable statement is:
- It has the highest interest rate, but the lowest annual fee.
This thoroughly explains the advantage of credit card A over others since its primary benefit lies in having the lowest annual fee.
