Answer:
8.77%
Step-by-step explanation:
You know the APR will be more than 8% because of the "processing fee." There is only one answer choice above 8%:
8.77%
_____
Bethany is financing $750 -100 = $650.
If we assume Bethany pays the entire amount in 1 year, then her payments for the first year will include 8% interest and the $5 fee.
8% × $650 = $52
So, the finance charges as a percentage of the amount financed are ...
($52 +5)/$650 × 100% = 8.76923% ≈ 8.77%
