Estimate the answer by picking the best choice without calculating. If I do not pay off my credit card balance each month, the most important cost factor is __________.
A) the annual fee
B) the APR

Question

Quizplus · Accepted Answer

The APR, or annual percentage rate, is the interest rate charged on a credit card balance that is not paid off in full each month. This can result in significant long-term costs, making it the most important cost factor when carrying a balance. The annual fee may be a one-time cost, or in some cases, waived entirely.

Estimate the Answer by Picking the Best Choice Without Calculating