Jennifer S.

asked • 10/28/14

setting up equation for apr

I am trying to come up with an equation to solve this problem:
A company has $5000 to invest. They have their choice of several packages
each package has a onetime fee and an annual interest rate. The
packages are: 5% APR $100 fee, 10% APR $200 fee, 15%
APR $300 fee, 20% APR $400 fee, 25% APR $500 fee. The
fee is paid first, before the interest is earned.
Calculate the amount saved each year.
All I can get is that part of the equation is going to be
Amount = Amount + (Amount * APR), but I am not sure how to incorporate the one time fee into that. I recognize that the relationship between the interest rate and fee is 5%, but beyond that I am lost.

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