i dont get this problem

User Generated

cnhyvan.pnagbena@lnu

Mathematics

Description

A payday loan store charges $25 for a one-month loan of $420. What annual interest rate is that equivalent to?

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Explanation & Answer

Loan amount = 420 $

Loan period = 30 days

Finance charges = 25

APR = (25/ 420) * (365/14) * 100 = 72.42%

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