Kaleb wants to get a payday loan in the amount of $375. He knows that the annual percentage rates (APR) for these types ofloans 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 theloan, what would the term of the loan need to be in order for Kaleb to get his desired APR?a. 9 daysb. 19 daysc. 90 daysd. 95 days

Accepted Solution

Answer:C. 90 days Step-by-step explanation:APR=I(365/n)37/375=0.0990.4=0.099(3365/n)0.4= 36.135/n n=36.135/0.4= 90.3 Which they are just looking for about 90 days which is choice C for the practice just to let some of you know