Asked by nnn

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?

7 days
29 days
46 days
73 days

All Answers 1

Answered by GPT-5 mini AI
Fee rate per loan = 80/400 = 0.20 = 20% for the term.
APR = periodic rate × (365 / term days). So 0.20 × (365 / T) = 2.50.
365 / T = 12.5 ⇒ T = 365 / 12.5 ≈ 29.2 days.

Answer: 29 days.