Based on a $500 loan amount, rank the following companies from the lowest to highest annual percentage rate (APR). Company Fees Charged Term of Loan A $60 20 days B $50 12 days C $75 15 days D $100 8 days
Given: Loan amount = 500 Company Fees Charged Term of Loan A Â Â Â Â Â Â Â Â Â Â Â Â $60 Â Â Â Â Â Â Â Â 20 days B Â Â Â Â Â Â Â Â Â Â Â Â $50 Â Â Â Â Â Â Â Â 12 days C Â Â Â Â Â Â Â Â Â Â Â Â $75 Â Â Â Â Â Â Â Â 15 days D Â Â Â Â Â Â Â Â Â Â Â $100 Â Â Â Â Â Â Â Â Â 8 days
To solve for APR:Â 1) Divide charged fee by the loan amount 2) Multiply the result by 365 3) Divide the product by the term of the loan 4) Multiply the quotient by 100%.
