Question

Shondra borrowed $200 for the books she needed for her second semester of college. The finance charge on the loan was $12, and the term of the loan was 21 days. What was the APR of Shondra's loan?

Answer 1

the Annual percentage rate of shondra loan is 104.28%

Explanation:

Given that

The borrowed amount is $200

The finance charge is $12

And, the term of the loan is 21 days

We need to find out the APR of the loan

so,

= (($12 ÷ $200) × 365) ÷ 21 × 100

= 104.28%

hence, the Annual percentage rate of shondra loan is 104.28%