Question

The Wet Dog Surf Company borrows $22,000 for 5 months and will pay $825.00 interest . Calculate Wet Dog's Annual Percentage Interest Rate (APR) (rounded to two decimal places).

Answer 1

The answer is 9%

Step-by-step explanation:

Solution

Given that:

Wet Dog Surf Company borrows= $22,000 for 5 months

Interest =$825.000

Now we have to find Wet Dog's Annual Percentage Interest Rate (APR)

Thus

The interest rate for 5 months is given by:

$825.00/$22,000

=0.0375% or 3.75%

So, APR becomes:

3.75% * 12/5

= 45/5

= 9%

Therefore the Annual Percentage Interest Rate (APR) for We Dog's is 9%