(15 points! ) tom has two credit cards and is planning on purchasing a racing bicycle that will cost $450. if tom charges the bike to one of his credit cards, which card will take the longest to pay off if he only makes the minimum payments? card a: apr 16%, annual fee: $40 card b: apr 21%, annual fee: $35 a)card a because it has a lower apr b)card a because it has a higher annual fee c)card b because it has a higher apr d)card b because it has a lower annual fee

A) Card A because it has a lower APR

Step-by-step explanation:

Since, the card A has 16% of APR and $ 40 as annual fees,

Therefore, the total payment after one year by card A = 16 % of $ 450 + $ 40

= 16 × 4.50 + 40

= 72 + 40

= $ 112

Now, the card B has 21% of APR and $ 35 as annual fees,

Therefore, the total payment after one year by card B = 21 % of $ 450 + $ 35

= 21 × 4.50 + 40

= 94.5 + 35

= $ 129.5

Since, 129.5 > 112

⇒ Card A has the less payment than that of card B, because it has lower APR,

Thus, Option A is correct.

answer: the answer is 110