Question

Shaquil needs to borrow $400. The loan company charges him $80 in fees for the loan. Shaquil calculates that the annual percentage rate (APR) on his loan is 250%. Approximately what is the term of Shaquil’s loan? a. 7 days b. 29 days c. 46 days d. 73 days

Answer 1

Answer:

(B)  

Step-by-step explanation:

PRINCIPAL AMOUNT(p) = $400

RATE (r)= 250% = 2.5

INTEREST = $80

t = time (in days) = t/365

By using the formula,

r = $\frac{i}{pt}$

2.5 = $\frac{80*365}{400*t}$

t = $\frac{364*80}{400*2.5}$

t = 29.2

t = 29 days (approx)

Hence option (B) is correct.

Answer 2

The answer is B.) 29 Days