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Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of
loans are high, but he is hoping to find one that has an APR of 40%. If Kaleb finds a business that charges a fee of $37 for the
loan, what would the term of the loan need to be in order for Kaleb to get his desired APR?
a. 9 days
b. 19 days
c. 90 days
d. 95 days

Respuesta :

ttompkins2898

Answer:

C. 90 days

Step-by-step explanation:

APR=I(365/n)

37/375=0.099

0.4=0.099(3365/n)

0.4= 36.135/n

n=36.135/0.4= 90.3

Which they are just looking for about 90 days which is choice C for the practice just to let some of you know

abiolataiwo2015

The term of the loan need to be in order for Kaleb to get his desired APR is :c. 90 days.

Term of the loan

First step

Fees rate=37/375

Fees rate=0.099

Second step

Term of the loan:

Loan term=(0.099×365 days)÷0.4

Loan term=36.135/0.4

Loan term=90 days

Inconclusion the term of the loan need to be in order for Kaleb to get his desired APR is :c. 90 days.

Learn more about loan term here:https://brainly.com/question/26011426

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