Question

You have Card A that offers 1.5% cash back on all purchases and Card B that offers 5% cash
back on rotating categories each quarter. If you spend $500 on groceries in a quarter where
groceries are the 5% category, how much cash back will you earn with each card? (2 points)
You will earn more cash back with Card
Γ
earned $
L
L
ل
L
compared to Cardi
L
total cash back compared to Card B earning $i
L
7.50
A
500
:
25
B
15
L
L
i, since Card A
i total cash back.

Answer 1

Card A: 1.5% of $500 = 0.015 × 500 = $7.50
Card B: 5% of $500 = 0.05 × 500 = $25.00

Card B earns $25 − $7.50 = $17.50 more than Card A.