Question

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

Answer 1

`\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}`