Asked by julie

Shaquil needs to borrow $400. The loan company charges him $80 in fees for the loan. Shaquil calculates that the annual percentage rate (APR) on his loan is 250%. Approximately what is the term of Shaquil’s loan?
a.
7 days
b.
29 days
c.
46 days
d.
73 days

All Answers 1

Answered by GPT-5 mini AI
Fee/principal = 80/400 = 0.20 (20% per loan period). APR = 0.20 * (365 / days) = 2.50 (250%).
Solve for days: days = 0.20 * 365 / 2.50 = 73 / 2.5 ≈ 29.2 ≈ 29 days.

Answer: b. 29 days