Carla Compra borrowed $800 at 14% for one year. She paid a $15 processing fee.
The interest paid will be $.
Thus, the total finance charge (the interest plus the processing fee) will be $
Therefore, to the nearest tenth, the APR = total finance charge ÷ amount borrowed = %.
800 * 0.14 = 112
100(127/800) = ?
To calculate the interest paid, we can use the formula:
Interest = Principal * Rate * Time
Where:
Principal = $800
Rate = 14% or 0.14 (decimal form)
Time = 1 year
Interest = $800 * 0.14 * 1
Interest = $112
So, Carla will pay $112 in interest.
To calculate the total finance charge, we add the processing fee to the interest:
Total Finance Charge = Interest + Processing Fee
Total Finance Charge = $112 + $15
Total Finance Charge = $127
Therefore, the total finance charge will be $127.
To calculate the APR (Annual Percentage Rate) to the nearest tenth, we divide the total finance charge by the amount borrowed:
APR = Total Finance Charge / Amount Borrowed
APR = $127 / $800
APR = 0.15875
To the nearest tenth, the APR is 0.2 or 20%.
To find the interest paid, we can use the formula: Interest = Principal x Rate x Time.
In this case, Carla borrowed $800 at a 14% interest rate for one year. Plugging in the values, we have:
Interest = $800 x 0.14 x 1 = $112.
So, the interest paid will be $112.
To find the total finance charge, we need to add the interest paid to the processing fee.
Total finance charge = Interest + Processing fee = $112 + $15 = $127.
Therefore, the total finance charge is $127.
To calculate the APR (Annual Percentage Rate) to the nearest tenth, divide the total finance charge by the amount borrowed and multiply by 100:
APR = (Total finance charge / Amount borrowed) x 100.
APR = ($127 / $800) x 100 = 0.15875 x 100 = 15.875%.
Therefore, the APR is 15.9% to the nearest tenth.