Asked by hi

Determine the annual percentage rate (APR) for a tax refund anticipation loan based on the following information. (Round to the nearest percent.)
amount of loan = $985
total fees paid = $135
term of loan = 10 days
a.
50%
b.
137%
c.
266%
d.
500%


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
APR = (fee / loan) × (365 / days) × 100%

= (135 / 985) × (365 / 10) × 100% ≈ 0.13706 × 36.5 × 100% ≈ 500% (rounded)

Answer: D (500%).