If a 24-day single payment loan has a periodic interest rate of 8.4% what is the approximate apr of the loan?
a. 201.6%
b. 127.8%
c. 12.8%
d. 20.2%

Option B, 127.8%

Step-by-step explanation:

If a 24-day single payment loan has a periodic interest rate of 8.4%.

First we divide 365 by 24 to make periods of 24 days in one year.

365 ÷ 24 = 15.21

periodic interest rate of 8.4%

then Annual Percentage Rate = 15.21 × 8.4 = 1 27.76 ≈ 127.8%

127.8% is the approximate APR of the loan.

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