Justin B.

asked • 11/25/19

APR Question Help

  1. Suppose you borrowed $500 dollars and after 2 months you paid the money back plus $25 dollars. What was the APR for this load?


1 Expert Answer

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Lenny D. answered • 12/02/19

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Two months is 1/6th of a year soo


(1+i/6)*1000= (1000+25) or 1+i/6=1025/1000 or 25/1000=i/6


finally multiply by 6 and get i=6*25/1000=150/1000=15%

Hope this helps.

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Lenny D.

I made a mistake. I thought it was a 1000 loan. it was a 500 loan. same procedure 525/500=1+i/6 or 25/500=i/6 or i=30%. Usury!!!
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12/02/19

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