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Schach [20]
3 years ago
11

Jim Tree borrowed $1,000 at 10 percent for one year. He paid a $45 processing fee and $100 in interest. Thus, the finance charge

is $145, the interest plus the application fee. What is the APR for this loan?
APR (to the nearest tenth) =
Mathematics
1 answer:
andrezito [222]3 years ago
8 0
Amount borrowed = $1,000
Total amount paid = Amount borrowed + Finance charge = $1000+145 = $1,145

APR = Finance charge/Amount borrowed = 145/1000 = 0.145 = 14.5%
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