AnswersPERFIN Personal Finance Sem 2 26-27Lesson 4: Consumer ResponsibilitiesQuestion 2
2
QuizMultiple Choice

Lesson 4: Consumer Responsibilities

Question 2 • [PERFIN] Personal Finance, Sem 2 (26-27)

Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types of loans are high, but he is hoping to find one that has an APR of 40%. If Kaleb finds a business that charges a fee of $37 for the loan, what would the term of the loan need to be in order for Kaleb to get his desired APR?

Answer
A
9 days
B
19 days
C
90 days
D
95 days

Explanation

Use APR = (fee ÷ loan amount) × (365 ÷ loan term in days). Here, $37 ÷ $375 ≈ 0.0987, so 0.0987 × (365 ÷ term) = 0.40. Solving gives a term of about 90 days, so the correct choice is 90 days.

AI-written and checked against the verified answer.

Previous
Next

More from this Course

Quiz
13 verified answers

Lesson 3: Bankruptcy

Quiz
12 verified answers

Lesson 2: Debt Management

Quiz
10 verified answers

Paying Off Debt