a company offering tax refund anticipation loans is trying to draw new customers. the company guarantees that the annual percentage rate on its loans is 39%. what fees would the company charge on a $1,200 loan if the term of the loan is 18 days? (round to the nearest dollar). a. $18 b. $23 c. $28 d. $30

first, we would need to know how much would it pay on 1 day

39/360 = 0.10833%
0.10833% of 1200 = 1.3 $/day
1.3 multiply by 18 days = 1.3*18 = 23.4 $
this finish on:
23$

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DelcieRiveria DelcieRiveria · Answer 2 · 2019-01-15T09:48:24+01:00

Answer:

The correct option is b.

Step-by-step explanation:

It is given that company guarantees that the annual percentage rate on its loans is 39%.

We have to find the fees would the company charge on a $1,200 loan if the term of the loan is 18 days.

The annual fees charged by the company on a $1,200 loan is

[tex]1200\times \frac{39}{100}=468[/tex]

We know that

[tex]1\text{ year}= 365\text{ days}[/tex]

[tex]\frac{1}{365}\text{ year}= 1\text{ days}[/tex]

[tex]\frac{18}{365}\text{ year}= 18\text{ days}[/tex]

The fees charged by the company on $1,200 loan for 18 days is

[tex]468\times\frac{18}{365}=23.08\approx 23[/tex]

Therefore option b is correct.