Question

Choose the correct answers. Carla Compra borrowed $800 at 14% for one year. She paid a $15 processing fee.

The interest paid will be $.
Thus, the total finance charge (the interest plus the processing fee) will be $
Therefore, to the nearest tenth, the APR = total finance charge ÷ amount borrowed = %.

Answer 1

$800 × 14% = $112
$112 + $15 = $127
APR = $127 ÷ $112
= 1.13

Answer 2

interest paid is: 112.00

Processing fee is: 127.00

APR is: 15.88% = 15.9%

Explanation:

800×0.14=112

112+15=127

(127÷800)*100==15.88%