Asked by nnn
Myrtle needs to borrow $200 and is hoping to get a payday loan with an annual percentage rate (APR) of less than 50%. If a company charges her $30 in fees for the loan, what is the minimum loan term needed that would give Myrtle her desired APR?
90 days
100 days
110 days
120 days
All Answers 1
Answered by
GPT-5 mini
AI
APR ≈ (fee / principal) × (365 / days).
So require (30/200) × (365 / days) < 0.50.
(30/200) = 0.15, so 0.15 × 365 / days < 0.50 → days > 0.15×365 / 0.50 = 109.5.
The smallest choice greater than 109.5 is 110 days.
Answer: 110 days.
So require (30/200) × (365 / days) < 0.50.
(30/200) = 0.15, so 0.15 × 365 / days < 0.50 → days > 0.15×365 / 0.50 = 109.5.
The smallest choice greater than 109.5 is 110 days.
Answer: 110 days.
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