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Gnesinka [82]
3 years ago
9

You get a 180-day $3,000 consumer loan at 9% interest You are required to pay a $100 setup fee at the time you get the loan. Bas

ed on a 365-day year, calculate the APR. Express the rate to the nearest tenth of a percent.
Mathematics
1 answer:
Naya [18.7K]3 years ago
6 0
The interest on the loan is
.. I = P*r*t = 3000*.09*180/365 = 133.15

Your effective rate is
.. r = I/(Pt) = (100 +133.15)/(3000*180/365) = 15.8%
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