Donnie has the option of borrowing $680 for 1 week at an apr of 450% or borrowing the $680 for 1 week with a fee of $60. which i

Question

amid [387]

4 years ago

12

Donnie has the option of borrowing $680 for 1 week at an apr of 450% or borrowing the $680 for 1 week with a fee of $60. which i

s the "better" deal?

Business

2 answers:

snow_lady [41] · Answer 1 · 2022-02-01T09:56:21+03:00

snow_lady [41]4 years ago

7 0

<span> borrowing the $680 for 1 week at an APR of 450%, since Donnie will owe less interest this way than with the fee of $60
</span>
APEX LEARNING

ozzi · Answer 2 · 2022-02-01T11:09:37+03:00

The better option would be borrowing $680 for 1 week with an APR of 450% because that is less than a flat fee of $60. The APR is the annual percentage rate, so even though the rate looks high, when broken down to what would be paid over the course of the week it's roughly 8% that is charged.