AnswersPERFIN Personal Finance Sem 2 26-27Lesson 4: Consumer ResponsibilitiesQuestion 3
3
QuizMultiple Choice

Lesson 4: Consumer Responsibilities

Question 3 • [PERFIN] Personal Finance, Sem 2 (26-27)

Verona goes to a business that offers tax refund anticipation loans because she really wants to get her money right now and not wait. They calculate her refund to be $985 and charge her $130 in fees for the loan. If the term on her loan is 15 days, what is the annual percentage rate on her loan?

Answer
A
130%
B
184%
C
317%
D
321%

Explanation

The annual percentage rate is the fee divided by the loan amount, annualized for a 15-day term. Calculate (130 ÷ 985) × (365 ÷ 15) × 100 ≈ 321%. The correct choice is 321%.

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