Bobby is trying to decide between two credit cards. One has no annual fee and an 18 percent interest rate, and the other has a $45 annual fee and an 8.5 percent interest rate. a. If Bobby pays his credit card balance in full each month, which card should he choose?

multiple choice 1

• He should select the card without the annual fee.

• He should most likely select the card with the lowest interest rate.

b. If Bobby just pays the minimum payment and carries a balance from one month to the next, which card should he choose?

multiple choice 2

• He should most likely select the card with the lowest interest rate.

• He should select the card without the annual fee