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Timia needs some cash in a hurry. She owns her car outright and is considering a...

Timia needs some cash in a hurry. She owns her car outright and is considering a title loan. The lender has told Timia that she could borrow $1500 for 1 month and the fee would be $120. What is the APR on Timia’s loan? Assume 12 equal months. Group of answer choices

96.00% APR.

160.00% APR.

80.00% APR.

8.00% APR.

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Answer #1

ONE MONTH INTEREST RATE = 120/1500 = 8%

AS IT IS A ONE MONTH RATE, APR = ANNUAL PERCENTAGE RATE = 8% X 12 = 96%

ANSWER : 96%

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