contestada

Donnie has the option of borrowing $680 for 1 week at an apr of 450% or borrowing the $680 for 1 week with a fee of $60. which is the "better" deal?

Respuesta :

 borrowing the $680 for 1 week at an APR of 450%, since Donnie will owe less interest this way than with the fee of $60 

APEX LEARNING 

The better option would be borrowing $680 for 1 week with an APR of 450% because that is less than a flat fee of $60.  The APR is the annual percentage rate, so even though the rate looks high, when broken down to what would be paid over the course of the week it's roughly 8% that is charged.

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