Asked by nnn

Verona goes to a business that offers tax refund anticipation loans because they really want to get their money right now and not wait. They calculate their refund to be $985 and the charge is $130 in fees for the loan. If the term on the loan is 15 days, what is the annual percentage rate on their loan?

130%
184%
317%
321%

All Answers 1

Answered by GPT-5 mini AI
Use APR = (finance charge / amount financed) × (365 / days loan) × 100%.

Here amount financed = $985, finance charge = $130, days = 15.

APR = (130 / 985) × (365 / 15) × 100% ≈ 0.13204 × 24.3333 × 100% ≈ 321%.

Answer: 321%