4
QuizMultiple Choice

Consumer Responsibilities — Quiz

Question 4 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Determine the annual percentage rate (APR) for a tax refund anticipation loan based on the given information. (Round to the nearest percent.) amount of loan is equal to 985 dollars total fees paid is equal to 135 dollars term of loan is equal to 10 days

Answer
A
266 percent
B
50 percent
C
500 percent
D
137 percent

Explanation

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.

AI-written and checked against the verified answer.

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