Final answer:
Borrowing $1500 from Loans R Us at 18 cents a day for each $200 would result in a total repayment of $1662 after 120 days, and the annual interest rate would be 32.4%. The options provided in the question do not accurately represent the calculations based on the given information.
Step-by-step explanation:
To calculate the total amount you would repay to Loans R Us for borrowing $1500 for 120 days, first, you need to determine how many $200 portions there are in $1500. This is done by dividing $1500 by $200, which equals 7.5. At a rate of 18 cents per day for each $200 borrowed, you would pay $0.18 x 7.5 portions per day. Therefore, the daily charge is $1.35 (0.18 x 7.5).
Over 120 days, the total interest paid would be $1.35 x 120 days = $162. To find the total repayment amount, you add the interest to the principal, which is $1500 + $162 = $1662.
To find the annual interest rate, we'll first calculate the total interest paid over a year. If one day costs $1.35, then 360 days (taking a year as 360 days per the question's instructions) would be $1.35 x 360 = $486 annual interest for every $1500 borrowed. The annual interest rate is then ($486 / $1500) x 100% = 32.4%.
Therefore, none of the options A), B), C), or D) correctly state the repayment amount and annual interest rate. The correct answer would be a repayment of $1662 and an annual interest rate of 32.4%.