kari receives a credit - card application in the mail that offers her an apr of just 3.9 percent if she…

kari receives a credit - card application in the mail that offers her an apr of just 3.9 percent if she transfers the balance from her existing card on which she currently pays an apr of 18 percent. which of the following is most likely? a. the 3.9 percent rate is a teaser rate that will go much higher sometime in the future. b. the new credit card probably offers frequent flyer miles without an additional charge. c. the bank makes a lot of money charging 18 percent to its credit - card customers. d. credit - card companies are desperate to lend money and are offering these rates to everyone.

kari receives a credit - card application in the mail that offers her an apr of just 3.9 percent if she transfers the balance from her existing card on which she currently pays an apr of 18 percent. which of the following is most likely? a. the 3.9 percent rate is a teaser rate that will go much higher sometime in the future. b. the new credit card probably offers frequent flyer miles without an additional charge. c. the bank makes a lot of money charging 18 percent to its credit - card customers. d. credit - card companies are desperate to lend money and are offering these rates to everyone.

Answer

Brief Explanations:

Credit card companies often offer low - introductory APRs to attract customers, which then increase later. Option A reflects this common practice. Option B about frequent flyer miles is not related to the APR change. Option C only mentions the bank's profit from the current rate without addressing the low - rate offer. Option D's claim that credit card companies are desperate and offer to everyone is an over - generalization.

Answer:

A. The 3.9 percent rate is a teaser rate that will go much higher sometime in the future.