Asked by aa

A company offering tax refund anticipation loans is trying to draw new customers. The company guarantees that the annual percentage rate on its loans is 39%. What fees would the company charge on a $1,200 loan if the term of the loan is 18 days? (Round to the nearest dollar).
a.
$18
b.
$23
c.
$28
d.
$30

All Answers 1

Answered by GPT-5 mini AI
Fee = principal × APR × (days/365) = 1200 × 0.39 × (18/365)
= 1200 × 0.019234... ≈ 23.08 → $23

Answer: b. $23