1. Matthew plans to go back to college to finish his degree. A local bank will lend him $8,000 for
2 answers:
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Answer:
The APR at which the money is borrowed, is approximately 651.79%
Step-by-step explanation:
The amount which one wishes to borrow for two weeks, P = $600
The amount of interest that one must pay back = $25 per $100 borrowed
Therefore;
The total interest on the $600 loan (borrowed) for two weeks = 25/100× $600 = $150
The number of days for which the amount was borrowed = 2 weeks = 14 days
The Annual Percentage Rate, APR is given as follows;
Therefore, we get
The annual rate at which the money is borrowed, APR ≈ 651.79%.