read the information about two competing credit cards\ncredit card 1\ninterest rate: 0% introductory rate…

read the information about two competing credit cards\ncredit card 1\ninterest rate: 0% introductory rate, then 13.8% after one year\nannual fee: none\ncredit card 2\ninterest rate: 12.1%\nannual fee: no annual fee in the first year, then $30 each year thereafter\ncredit card 1 would be the better option if the borrower\nhad major expenses in the first year\nspent a lot of money in the second year.\nused the card regularly in the long term\ncarried a large balance in the long term.

read the information about two competing credit cards\ncredit card 1\ninterest rate: 0% introductory rate, then 13.8% after one year\nannual fee: none\ncredit card 2\ninterest rate: 12.1%\nannual fee: no annual fee in the first year, then $30 each year thereafter\ncredit card 1 would be the better option if the borrower\nhad major expenses in the first year\nspent a lot of money in the second year.\nused the card regularly in the long term\ncarried a large balance in the long term.

Answer

Explanation:

Step1: Analyze Credit Card 1 features

Credit Card 1 has 0% introductory rate for 1 - year and no annual - fee.

Step2: Analyze Credit Card 2 features

Credit Card 2 has 12.1% interest rate and $30 annual fee after first year.

Step3: Evaluate options

If a borrower has major expenses in the first year, they pay 0% interest with Credit Card 1, while Credit Card 2 has an interest rate. So Credit Card 1 is better in this case.

Answer:

had major expenses in the first year