Suppose you pay back $420 on a $400 loan you had for 105 days. What was your simple annual interest rate? State your result to the nearest hundredth of a percent.

Question

Math

Answer 1

420-400=$20 interest

20/400=5% per less than 1/3 year

APR>3(5%)

x/365= 20/105

x=70

r=70/365=14/73= .1918 = 19.18% APR