A loan for $1,200 has an annual interest rate of 5.2%. There is a $15 processing fee to receive the loan. The loan’s APR is 5.2%
<u>Solution:
</u>
Since full form of APR is Annual Percentage Rate and it is defined as rate of interest for whole year which means it is same as annual interest rate. Also processing fee is totally different component.
So APR = annual interest rate ----- eqn 1
Given that a loan of $1200 has an annual interest rate of 5.2% .
So by using eqn 1 we can say APR = annual interest rate = 5.2%
Add 2 sides together. If the sum of greater than the length of the 3rd side for all 3 options it can form a right triangle if it doesn’t than it can’t:
9 + 12 = 21 which is not greater than the 3rd side length of 21 so this cannot form a right triangle.