ou decided to go and apply for a credit card at your local financial institution. The Prime rate currently announced on June 1 was 3.25%. You have good credit history and a FICO score of 700. The lowest rate that they can offer to individuals is a 18.99% APR for a credit card that gives cashback on purchases and rewards. You were offered 21.99% APR for the credit card. How did the lender determine or calculate what rate they should offer you?

ou decided to go and apply for a credit card at your local financial institution. The Prime rate currently announced on June 1 was 3.25%. You have good credit history and a FICO score of 700. The lowest rate that they can offer to individuals is a 18.99% APR for a credit card that gives cashback on purchases and rewards. You were offered 21.99% APR for the credit card. How did the lender determine or calculate what rate they should offer you?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter4: Going Into Debt

Section: Chapter Questions

Problem 29AA

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