Question

Shaquil needs to borrow $400. The loan company charges him $80 in fees for the loan. Shaquil calculates that the annual percentage rate (APR) on his loan is 250%. Approximately what is the term of Shaquil’s loan? a. 7 days b. 29 days c. 46 days d. 73 days

Answer 1

B

Explanation:

Answer 2

(B)

Explanation:

PRINCIPAL AMOUNT(p) = $400

RATE (r)= 250% = 2.5

INTEREST = $80

t = time (in days) = t/365

By using the formula,

r =
`(i)/(pt)`

2.5 =
`(80*365)/(400*t)`

t =
`(364*80)/(400*2.5)`

t = 29.2

t = 29 days (approx)

Hence option (B) is correct.