To determine which rate would most likely be the introductory APR for Godfrey's new credit card, given that the standard APR is [tex]\(11.2\%\)[/tex], we need to understand the concept of introductory APR and standard APR.
1. Standard APR (Annual Percentage Rate) is the regular interest rate applied to balances on the credit card after the introductory period ends. In this case, the standard APR is [tex]\(11.2\%\)[/tex].
2. Introductory APR is a lower interest rate offered for a temporary period to attract new customers. This rate is generally significantly lower than the standard APR.
Given this context, let's examine the provided options:
- Option A: [tex]\(1.2\%\)[/tex]
This is a very low rate compared to the standard APR of [tex]\(11.2\%\)[/tex]. It makes sense for a credit card company to offer such a low rate as an introductory APR to attract customers.
- Option B: [tex]\(31.2\%\)[/tex]
This is much higher than the standard APR. It would not make sense for an introductory rate to be higher than the standard rate, as the purpose of an introductory APR is to offer a lower rate initially.
- Option C: [tex]\(11.2\%\)[/tex]
This is exactly the same as the standard APR. An introductory APR is typically lower than the standard rate, so this option does not fit the typical pattern for an introductory offer.
- Option D: [tex]\(21.2\%\)[/tex]
This is higher than the standard APR. Similar to option B, offering a higher rate as an introductory APR would not attract new customers.
After evaluating all the options, it becomes clear that the most likely introductory APR would be:
- A: [tex]\(1.2\%\)[/tex]
Thus, the introductory APR that is most likely is [tex]\(1.2\%\)[/tex].
