Suppose you wish to borrow $700 for five weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the APR at which you are borrowing money?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 3SE: The Oxford Dictionary defines the word nominal asa value that is “stated or expressed but...
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1. Suppose you wish to borrow $700 for five weeks and the amount of interest you must pay is $20
per $100 borrowed. What is the APR at which you are borrowing money?
Hint: Recall that APR is interest rate over a year.
APR = Short term interest rate
52 weeks
length of loan
Transcribed Image Text:1. Suppose you wish to borrow $700 for five weeks and the amount of interest you must pay is $20 per $100 borrowed. What is the APR at which you are borrowing money? Hint: Recall that APR is interest rate over a year. APR = Short term interest rate 52 weeks length of loan
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