3
QuizMultiple Choice

Consumer Responsibilities — Quiz

Question 3 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Myrtle needs to borrow 200 dollars and is hoping to get a payday loan with an annual percentage rate (APR) of less than 50 percent If a company charges her 30 dollars in fees for the loan, what is the minimum loan term needed that would give Myrtle her desired APR?

Answer
A
90 days
B
120 days
C
100 days
D
110 days

Explanation

The fee is 30 ÷ 200 = 0.15, or 15% of the amount borrowed. To keep the annualized rate below 50%, the loan must last more than (0.15 ÷ 0.50) × 365 = 109.5 days. The shortest listed term that meets that requirement is 110 days, so the answer is D) 110 days.

AI-written and checked against the verified answer.

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