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 5.2%. There’s a $15 processing fee for receiving the loan.

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Question: A loan for $1,200 has an annual interest rate of 5.2%. There is a $15 processing fee to receive the loan. The loan’s APR is

Asked by roberto

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To calculate the Annual Percentage Rate (APR) of a loan, we need to consider both the interest rate and any additional fees. 1. First, calculate the total interest amount for one year. Interest amount = (Loan amount) * (Interest rate) = $1,200 * 5.2% = $1,200 * 0.052 = $62.4 2. Add the processing fee to the interest amount. Total cost = Interest amount + Processing fee = $62.4 + $15 = $77.4 3. Calculate the APR by dividing the total cost by the loan amount and multiplying by 100 to get a percentage. APR = (Total cost / Loan amount) * 100 = ($77.4 / $1,200) * 100 = 6.45% The loan's APR is 6.45%.

Answered by gpt-4

April 17, 2023, 12:18 p.m.

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This article was generated in part by one of OpenAI’s large-scale language-generation model, answering user roberto's question. Images were generated with OpenAI's AI model, DALL·E 2. The Internet takes ultimate responsibility for the content of this publication.
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Published: Monday, April 17, 2023

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