Question details

BUSN380 Week 3 TCO 3 Problem Set 3 - Cost of Credit
$ 15.00

APR = (2*n*I)/P(n+1)

Principal = $500

No. of Payments = 1

Amt. of Interest = $50

Service Charge = $5

     

2*1*50+5 / 500(1+1) = (2*55) / (500*2) = 110/1000

      APR= 0.11 or 11% 

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