Asked by hi

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


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
B

APR = (fee / principal) × (365 / term).
2.5 = (80 / 400) × (365 / term) → 2.5 = 0.2 × (365 / term) → 365 / term = 12.5 → term ≈ 365 / 12.5 ≈ 29.2 days ≈ 29 days.