Question

Examine the credit terms below
Interest Rates and Interest Charges
0% introductory APR for 10 months.
Annual Percentage Rate (APR) for purchases after that, your APR will be 10.99%, 15.99%, or 17.99% based on your creditworthiness. This APR will vary with the market, based on the Prime Rate.
Why would the lender offer a lower introductory APR for 10 months?
To reduce its profits
O To eliminate its risk
To entice consumers to use its credit card
To encourage consumers to apply for secured loans

Answer 1

Answer:

To entice customers to use it's credit card

Explanation:

Credit Card companies use tactics like this because it sounds more appealing then having to start paying immediately. This gives them an advantage over other companies that don't offer this making more people want to use their credit card.

Answer 2

In the above situation, the lender is offering a lower introductory APR for ten months to entice the consumers to use its credit card.

What is a credit card?

A credit card is a form of plastic and digital money, which is used to pay for the purchases of the cardholder against the credit limit offered to the consumers.

APR is the rate at which the interest rate charged to the credit card holders in case of defaulted or late repayments. Low APR is attractive for the consumers as they can get to use a credit limit.

Hence, option C holds true regarding a credit card.

Learn more about a credit card here:

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