What is the APR of a $200 loan for 14 days with a $20.00 origination fee?...

Question

Question

What is the APR of a $200 loan for 14 days with a $20.00 origination fee?

Please show your step by step calculations.

Thank you.

Answer 1

Answer #1

APR = [Finance charge /Loan amount] * [365/N]

Where N= number of days /term of loan

=[20/200] *[365/14]

= .10* 26.07143

= 2.607143 or 260.71% (2.607143*100 to get in % terms)

Answer 2

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