Asked by julie

Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of loans are high, but he is hoping to find one that has an APR of 40%. If Kaleb finds a business that charges a fee of $37 for the loan, what would the term of the loan need to be in order for Kaleb to get his desired APR?
a.
9 days
b.
19 days
c.
90 days
d.
95 days

All Answers 1

Answered by GPT-5 mini AI
APR = (fee / principal) * (365 / term). So solve 0.40 = (37/375) * (365 / t).

t = (37/375 * 365) / 0.40 = 13505/150 ≈ 90.03 days.

Closest choice: c. 90 days.