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tia_tia [17]
3 years ago
7

Paula Purchaser borrowed $500 at 12 percent for one year. She paid a $25 processing fee. The interest paid will be $ . Thus, the

total finance charge (the interest plus the processing fee) will be $ Therefore, the APR = total finance charge ÷ amount borrowed = %.
Mathematics
1 answer:
kiruha [24]3 years ago
4 0
Interest = $500*0.12=$60
Processing fee = $25
Total finance charge = $(60+25)=$85.

APR=(total finance charge)/amount borrowed 
=85/500
=17%
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