Question

annual percentage rate (apr) 20.99%
grace period 30 days
annual fee $55
foreign transaction fee 3% of the purchase amount

sky is considering signing up for this credit card to have in case of an emergency, and their main concern are any fees associated with having the card. sky does not travel internationally and does not plan on having a balance on the card.

which row of the schumer box is relevant to sky as they pick a credit card?

choose 1 answer:
a annual percentage rate (apr)
b grace period
c annual fee
d foreign transaction fee

Explanation:

Sky's main concern is fees associated with having the card. They don't travel internationally (so foreign transaction fee is irrelevant) and don't plan to carry a balance (so APR is less relevant as it's about interest on balances). Grace period relates to when interest is charged, not a fee for having the card. Annual fee is a fee paid yearly for having the card, so it's relevant to Sky's concern about fees for having the card.

Answer:

C. annual fee