113k views
5 votes
Timia needs so cash in a hurry she owns her car outright and is considering a title loan. The lender told timia she could borrow 1750 for 1 month

User Leselle
by
3.0k points

1 Answer

1 vote

The question is incomplete ; the fee which Timia would pay isn't given. And this is needed to compute the APR on the loan.

I would assume that the fee which Timia would pay as interest on the 1 - month loan is x

Answer:

r = x / 145.83333

Explanation:

If interest paid, I = x

Principal, P = $1750

And period (time) of loan = 1 month = (1/12) = 0.0833333

Rate = r

Using the simple interest formula :

Interest = Principal * rate * time

x = 1750 * r * 0.833333

Make r the subject :

x = 145.83333r

Divide both sides by 145.83333

Hence, the rate value , r becomes :

r = x / 145.83333

Therefore, the student can just input the appropriate, interest value in place of x and obtain the correct and exact answer (I do not want to use an hypothetical value for x) .

User Nyanev
by
3.1k points