Answer:
The correct answer is D. 500%
Step-by-step explanation:
Amount of Loan = $985
Total fees paid = $135
Term of loan = 10 days
- First divide the amount of loan by total fees paid :
\(=\frac{985}{135}\\\\=0.137\)
- Now, multiply the result by 365 :
= 0.137 × 365
= 50.03
- Divide the result obtained by term of loan that is 10 days :
\(=\frac{50.03}{10}\\\\=5.003\)
- Now, multiply this by 100 to get the final APR :
= 5.003 × 100
= 500%
Hence, The correct answer is D. 500%
