Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of loans

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2 years ago

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Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of loans

are high, but he is hoping to find one that has an APR of 40%. If Kaleb finds a business that charges a fee of $37 for the loan, what would the term of the loan need to be in order for Kaleb to get his desired APR? a. 9 days b. 19 days c. 90 days d. 95 days Please select the best answer from the choices provided A B C D.

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1 answer:

fomenos · Answer 1 · 2023-03-13T11:26:14+03:00

It would take 95 days for Kaleb to get his desired APR.

Since Kaleb wants to get a payday loan in the amount of $ 375, and he is hoping to find one that has an APR of 40%, if Kaleb finds a business that charges a fee of $ 37 for the loan, to determine what the term of the loan need to be in order for Kaleb to get his desired APR, the following calculation must be performed:

APR = 37/375 x 365
APR = 0.098 x 365
APR = 36
100 = 365
36 = X
36 x 365/100 = X
13140/100 = X
131.4 = X
131.4 - 37 = 94.4

Therefore, it would take 95 days for Kaleb to get his desired APR.

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