Question

the versatile rewards card
card features:
benefits:

• earn 4% cash back on dining and entertainment.
• 2% cash back at grocery stores.
• 1% cash back on all other purchases.
• no foreign transaction fees.
• $150 sign - up bonus after spending $1,000 in the first three months.
• complimentary access to various online streaming services for the first year.

trade - offs:

• $95 annual fee starting from the second year.
• higher apr on balances compared to similar cards.
• cash back on dining and entertainment capped at $5,000 annually.
• requires excellent credit for approval.

the versatile rewards card, with its specific cash back categories and perks, is designed to match various consumer needs. however, its value depends significantly on an individuals spending habits, especially considering the annual fee after the first year and the higher apr.
which of the following individuals is likely to gain the least benefit from the versatile rewards card based on their typical spending patterns?
naomi, who frequently dines at restaurants and often goes to movie theaters and music concerts
odin, a graduate student who primarily spends on textbooks, educational materials, and occasional groceries
chloe, who enjoys dining out and regularly subscribes to multiple streaming services

Explanation:

Odin, a graduate student who primarily spends on textbooks and educational materials, would likely gain the least benefit from the Versatile Rewards Card. The card's benefits are focused on cash - back for dining, entertainment, and grocery stores. There is no specific cash - back category or perk mentioned for educational expenses like textbooks. Chloe has dining and streaming (which has a complimentary access perk) in her spending habits. Naomi has dining (4% cash - back) and entertainment (covered by the card's benefits) in her spending. Odin's main spending (textbooks) is not a category where the card offers significant rewards (only 1% on “all other purchases” which is a lower rate compared to the 2% on groceries and 4% on dining/entertainment).

Answer:

Odin