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spin [16.1K]
3 years ago
15

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 .

Mathematics
1 answer:
Charra [1.4K]3 years ago
6 0

<u>Answer: </u>

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%

Hence APR for a loan of $1200 is 5.2%

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