Question

Paula Purchaser borrowed $500 at 12 percent for one year. She paid a $25 processing fee.

The interest paid will be $ ?

Thus, the total finance charge (the interest plus the processing fee) will be $ ?

Therefore, the APR = total finance charge ÷ amount borrowed = ? %


Help please!!!

Answer 1

Explanation:

interest:60

int+fee :85

all :17

Answer 2

500*0.12=60 interest paid
Total finance charge=60+25=85
APR=85÷500
APR=0.17*100=17%