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azamat
3 years ago
7

18. Noah paid off a loan with a simple interest rate of

Mathematics
1 answer:
Elena L [17]3 years ago
7 0

Answer:

29.1% is the correct APR

Step-by-step explanation:

Annual percentage rate=(interest+fees)/principal amount/n*365 days

interest is 9.7%

fees is not applicable to this question

principal is 100%

n is the number of days the loan was taken out for which is 4 months and the 365 days would be represented by 12 months instead.

annual percentage rate(APR)=(9.7%/100%/4)*12=29.1%

The correct option is 29.1% which represents the annual rate of interest on the loan taken by Noah on yearly basis

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