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\begin{tabular}{|c|c|}
\cline { 2 - 2 } \multicolumn{1}{c|}{} & Credit card A \\
\hline Interest & [tex]$14.95 \%$[/tex] \\
\hline Annual fee & [tex]$\$[/tex] 25$ annually \\
\hline
\end{tabular}

Why is credit card A the better option?

A. It has the highest interest rate, but the lowest annual fee.
B. It has the lowest interest rate and annual fee after the first year.
C. It has the lowest interest rate for the first year and no annual fee.
D. It has the lowest annual fee for the first year and the lowest interest rate.



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.