Question

Choose the correct answers. Karla Kaufmann borrowed $750 at 12 percent for one year. She paid a $20 processing fee. The interest paid will be $ . Thus, the total finance charge (the interest plus the processing fee) will be $ Therefore, to the nearest tenth, the APR = total finance charge ÷ amount borrowed = %.

Answer 1

Answer:

Interest paid is $90.

Total finance charge is $110.

APR is 14.7%

Step-by-step explanation:

Karla Kaufmann borrowed $750 at 12 percent for one year.

She paid a $20 processing fee.

Thus the interest paid is = $\frac{12}{100}\times750= 90$ dollars

And the total finance charge (the interest plus the processing fee) will be=

$90+20=110$ dollars

Also, to the nearest tenth, the APR is :

$\frac{110}{750}\times100 =14.67$ ≈ 14.7%

Answer 2

750x.12= $90
90+20=110
110/750= 14.7%

I hope this helps!