Answer: Lots of different interest rates…
From NPR.org (if you go to the link, there is a interactive with a slider bar that allows you to see how the distribution of interest rates has changed from 2001-2013):
Ask students to provide several takeaways in analyzing this chart. which might include…
- Wide variation in interest rates on credit cards (from 0% to 30%). Why? Explain importance of credit scores.
- Significant number (6 million) paying 0%. Be sure to explain the concept of 0% APR.
- Most paying between 8%-20%.
- Large number are paying 22-30%. Why do you think card companies charge these higher rates to consumers?