Karla receives a credit card application in the mail that offers her an APR of just 3.9 percent if she transfers the
balance from her existing card on which she currently pays an APR of 18 percent. Which of the following is
most likely?
O
A. The new credit card probably offers frequent flier miles without an additional charge.
B. The 3.9 percent rate is a teaser rate that will go much higher sometime in the future.
C. The bank makes a lot of money charging 3.8 percent to its credit card customers.
D. Credit card companies are desperate to lend money and are offering these rates to everyone.
10