John Is Considering Pursuing One of Two Credit Cards

John is considering pursuing one of two credit cards. Credit card "A" has no annual fee and charges an interest rate of 12.5%. Credit card "B" has an annual fee of $45 but charges an interest rate of 9%. If John is likely to have an average credit card balance of $2,000, the lowest annual expenses John could have with one of these two cards would be

A) $225.
B) $180.
C) $250.
D) $240.

Correct Answer:

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