Question

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)

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