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alina1380 [7]
3 years ago
14

A student borrows $500 for one year, and is charged $50 in interest. He/she also pays a fee of $10 for the loan. What is the tot

al cost of financing and the APR?
Business
1 answer:
DiKsa [7]3 years ago
4 0

Answer:

$60 and 12%

Explanation:

The computation of the total cost of financing and the APR is shown below:

The total cost of financing is

= Interest charged + fee paid for the loan

= $50 + $10

= $60

Now the APR is

= Total financing cost ÷ Borrowed amount

= $60 ÷ $00

= 0.12 or 12%

We simply applied the above formula so that the total financing cost and the APR could come

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