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24 votes
24 votes
Jenny borrows $1200 from a payday lender. The finance charge is $50 for two weeks. What is the APR on the loan? Use the formula contained in Worksheet formula APR=(finance charge/total amount financed) x (52/# of weeks in term of loan) x 100

User Dusan Dimitrijevic
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1 Answer

14 votes
14 votes

\begin{gathered} \text{APR = (}\frac{fin\text{ance charge}}{\text{total amount financed}})*(52)/(2)\text{ }*100 \\ \end{gathered}
\text{APR = (}(60)/(1100))*26\text{ }*100
\begin{gathered} \text{APR = 0.054545454 }*26\text{ }*100 \\ \text{APR =\$141.82} \end{gathered}

User Nicholas Wilson
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