Emma borrowed $300 to repair her car. the finance (interest) charge on the loan was $20, and the term on the loan was 14 days. what was the apr for emma's loan? (popup calculator)

Question

Mathematics

Nicholas Knox

21 April, 08:59

Emma borrowed $300 to repair her car. the finance (interest) charge on the loan was $20, and the term on the loan was 14 days. what was the apr for emma's loan? (popup calculator)

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Answers (1)

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Flower · Answer 1

Given:

loan amount = 300

finance charge = 20

term = 14 days.

To solve for APR.

1. Divide the finance charge by the loan amount.

20/300 = 0.0667

2. Multiply the result by 365.

0.0667 x 365 = 24.35

3. Divide the result by the term of the loan.

24.35/14 = 1.74 (APR in decimal format)

4. Multiply the result by 100.

1.74 x 100 = 174% APR