Mathematics: Determine the annual percentage rate (apr) for a tax refund anticipation loan based on the following information. (round to the nearest percent.) amount of loan = $985 total fees paid = $135 term of loan = 10 days a. 50% b. 137% c. 266% d. 500%

Determine the annual percentage rate (apr) for

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06.01.2022

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%

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