Question

If you borrow $12250 and pay $147 in annual interest, the APR on your loan is 1.2% 14.7% 1.23% 7.35%

Answer 1

Answer: 1.2%

Step-by-step explanation:

Given

If one borrows $12,250

and give $147 interest on it

Then the interest is given from the formula

`\Rightarrow S.I=(P* R* T)/(100)\\\\\Rightarrow 147=(12,250* R* 1)/(100)\\\\\Rightarrow R=(147)/(122.50)\\\\\Rightarrow R=1.2\%`

Thus, the annual rate of interest is 1.2%