Question 4 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT
The fee is 135 ÷ 985 ≈ 0.1371, or about 13.71% of the loan for 10 days. Annualize that rate: 13.71% × (365 ÷ 10) ≈ 500%. The APR is therefore 500%, choice C.
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