Calculate the APR of a loan for $9,775 (which includes loan fees of $210), at 13% for 4 years. Round your answer to the nearest hundredth percent.

Question

Conor

Mathematics

24 September, 00:44

Calculate the APR of a loan for $9,775 (which includes loan fees of $210), at 13% for 4 years. Round your answer to the nearest hundredth percent.

+2

Answers (1)

Know the Answer?

Jovani · Answer 1

Answer: 13.54%

Step-by-step explanation:

We compute the annual percentage rate (APR) using the formula:

APR=[ (loanfee+interest) / Principaln*365]*100

Where n is the number of days in the loan repayment term.

In our question, we have:

r = 0.13n=4*365=1,460 days.

Therefore:APR=[ (210+9,775*0.13) / 9,7751,460*365]*100=13.54%