Credit card A has an APR of 25.24% and an annual fee of $100, while credit
card B has an APR of 30.49% and no annual fee. All else being equal, which
equation can be used to solve for P, the principal for which the cards offer the
same deal over the course of a year? (Assume all interest is compounded
monthly.)
O A. P(1 + 0.2524) ¹2 + 100 = P(1 + 0.3049)¹
12
12
12
O B. P(1 + 0.2524) ¹2
12
O c. P(1 + 0.2524) ¹² +
12
O D. P(1 + 0.2524) 1² .
100
12
100
12
=
= P(1 + 0.3049)
12
= P(1 +
100
0.3049 12
19) 12
0.3049 12
12
12
=
= P(1 + 0.3049) ¹2