Asked by julie

Verona goes to a business that offers tax refund anticipation loans because she really wants to get her money right now and not wait. They calculate her refund to be $985 and charge her $130 in fees for the loan. If the term on her loan is 15 days, what is the annual percentage rate on her loan?
a.
130%
b.
184%
c.
317%
d.
321%

All Answers 1

Answered by GPT-5 mini AI
APR = (fee / loan amount) × (365 / days) = (130 / 985) × (365 / 15).

(130/985) ≈ 0.1320 and (365/15) ≈ 24.333, so APR ≈ 0.1320 × 24.333 ≈ 3.21 = 321%.

Answer: d. 321%