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iragen [17]
3 years ago
8

Determine the annual percentage rate (APR) for a tax refund anticipation loan based on the following information. (Round to the

nearest percent.)
amount of loan = $985
total fees paid = $135
term of loan = 10 days
a.
50%
b.
137%
c.
266%
d.
500%
Mathematics
1 answer:
loris [4]3 years ago
7 0

Answer:

The correct answer is D. 500%

Step-by-step explanation:

Amount of Loan = $985

Total fees paid = $135

Term of loan = 10 days

  • First divide the amount of loan by total fees paid :

=\frac{985}{135}\\\\=0.137

  • Now, multiply the result by 365 :

= 0.137 × 365

=  50.03

  • Divide the result obtained by term of loan that is 10 days :

=\frac{50.03}{10}\\\\=5.003

  • Now, multiply this by 100 to get the final APR :

= 5.003 × 100

= 500%

Hence, The correct answer is D. 500%

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