390
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 390 • Career Explorations A

A company offering tax refund anticipation loans is trying to draw new customers. The company guarantees that the annual percentage rate on its loans is 39%. What fees would the company charge on a $1,200 loan if the term of the loan is 18 days? (Round to the nearest dollar).

Answer
A
$18
B
$23
C
$28
D
$30

Explanation

Use the annual percentage rate to find interest for 18 days: $1,200 × 0.39 × (18 ÷ 365) ≈ $23.08. Rounded to the nearest dollar, the company would charge $23, which is choice B.

AI-written and checked against the verified answer.

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