The annual percentage rate (APR) for this loan is equal to 412.7%.
What is APR?
APR is an abbreviation for annual percentage rate and it can be defined as a measure of an amount of money based on a yearly rate of interest, which a borrower must pay on a loan or credit card.
Mathematically, the annual percentage rate (APR) of a loan can be calculated by using this formula:
APR = [((simple interest/principal)/n) × 365] × 100
Where:
n represents the number of days.
Note: n is equal to 14 days (2 weeks).
Substituting the given parameters into the formula, we have;
APR = [((95/600)/n) × 365] × 100
APR = 0.01130 × 36500
APR = 412.7%.
the answer should be $568
Explanation: