Belinda is in the process of choosing a credit card. She has narrowed her choice to two cards: 1. A credit card co-branded with a major airline. The card offers the following features: 1 mile earned for every $1 spent on eligible purchases. A$25 per bag fee will be waived for the first bag checked per flight. She will receive free priority seating. The card charges an annual $90 fee. The APR varies from 15.00% to 25.50% based on each borrower's credit score. Other fees, including balance transfer and late fees, apply. Card miles can be redeemed at the rate of $50 for 5,000 miles. 2. A credit card that offers a 1% cash-back rebate on all purchases made with the card during the year. The card offers the following features: The amount of cash earned never expires. The cash earned may be redeemed or used to pay outstanding charges. The card has no annual fee. The APR varies from 12.50% to 22.00% based on each borrower's credit score. Other fees, including balance transfer and late fees, apply. Belinda plans to spend approximately $43,000.00 per year on her credit card. Her plan is to make purchases and then pay the balance in full each month. She is not particularly worried about the APR. She is primarily interested to know if the airline credit card is a good option if she plans to make two trips each year to see her family. (When making your calculations, assume that the cost of a flight is $530 for a roundtrip ticket. If she uses the cash-back credit card, assume that she will pay a $25 baggage fee for each leg of her trip.) Based on this information, which credit card should Belinda choose? Belinda should choose Airline Card Miles Cash Back Card Attempts: 0 of 1 used Save for Later Submit Answer Belinda is in the process of choosing a credit card. She has narrowed her choice to two cards: 1. A credit card co-branded with a major airline. The card offers the following features: 1 mile earned for every $1 spent on eligible purchases. A$25 per bag fee will be waived for the first bag checked per flight. She will receive free priority seating. The card charges an annual $90 fee. The APR varies from 15.00% to 25.50% based on each borrower's credit score. Other fees, including balance transfer and late fees, apply. Card miles can be redeemed at the rate of $50 for 5,000 miles. 2. A credit card that offers a 1% cash-back rebate on all purchases made with the card during the year. The card offers the following features: The amount of cash earned never expires. The cash earned may be redeemed or used to pay outstanding charges. The card has no annual fee. The APR varies from 12.50% to 22.00% based on each borrower's credit score. Other fees, including balance transfer and late fees, apply. Belinda plans to spend approximately $43,000.00 per year on her credit card. Her plan is to make purchases and then pay the balance in full each month. She is not particularly worried about the APR. She is primarily interested to know if the airline credit card is a good option if she plans to make two trips each year to see her family. (When making your calculations, assume that the cost of a flight is $530 for a roundtrip ticket. If she uses the cash-back credit card, assume that she will pay a $25 baggage fee for each leg of her trip.) Based on this information, which credit card should Belinda choose? Belinda should choose Airline Card Miles Cash Back Card Attempts: 0 of 1 used
