Question

Karla Kaufmann borrowed $750 at 12 percent for one year. She paid a $20 processing fee.

The interest paid will be $ .
Thus, the total finance charge (the interest plus the processing fee) will be $
Therefore, to the nearest tenth, the APR = total finance charge ÷ amount borrowed =

Answer 1

750x.12= $90
90+20=110
110/750= 14.7%

Answer 2

Total interest paid 750×0.12=90
Total finance charge 90+20=110
The APR (110/750)*100=14.7%