Answer:
A The APR is over 240%.
Step-by-step explanation:
Given:
- Loan amount = $1000
- Time = 30 days
- Rate = $200 per 30 days
Now options:
A The APR is over 240%.
- Correct since $200 per 30 days ⇒ 20% per 30 days ⇒ 240$ per 360 days ⇒ more than $240 for year
B The fee will be paid only if Kingston makes a late payment.
-
Incorrect. This is the sum to be paid at the end of 30 days
C The $1,000 plus finance charges will be paid at the end of one year.
-
Incorrect. All charges including the loan due paid at the end of 30 days
D Kingston will receive $1,200 from the loan.
- Incorrect. Loan amount is $1000`.
