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Based on a [tex]$\$[/tex] 500[tex]$ loan amount, rank the following companies from the lowest to highest annual percentage rate (APR).

\begin{tabular}{|c|c|c|}
\hline Company & Fees Charged & Term of Loan \\
\hline A & $[/tex]\[tex]$ 60$[/tex] & 20 days \\
\hline B & [tex]$\$[/tex] 50[tex]$ & 12 days \\
\hline C & $[/tex]\[tex]$ 75$[/tex] & 15 days \\
\hline D & [tex]$\$[/tex] 100$ & 8 days \\
\hline
\end{tabular}

a. A, B, C, D

b. B, A, C, D

c. D, B, C, A

d. D, C, B, A

Please select the best answer from the choices provided.



Answer :

GinnyAnswer
To determine the ranking of the companies based on their APR (Annual Percentage Rate), we'll need to calculate the APR for each company using the given fees and loan terms.

1. Calculate APR for Company A:
- Fees charged: \[tex]$60 - Term of loan: 20 days - APR = \(\left(\frac{\text{Fee}}{\text{Loan Amount}}\right) \times \left(\frac{365}{\text{Term}}\right) \times 100\) - APR for A = \(\left(\frac{60}{500}\right) \times \left(\frac{365}{20}\right) \times 100 = 219\%\) 2. Calculate APR for Company B: - Fees charged: \$[/tex]50
- Term of loan: 12 days
- APR for B = [tex]\(\left(\frac{50}{500}\right) \times \left(\frac{365}{12}\right) \times 100 = 304.167\%\)[/tex]

3. Calculate APR for Company C:
- Fees charged: \[tex]$75 - Term of loan: 15 days - APR for C = \(\left(\frac{75}{500}\right) \times \left(\frac{365}{15}\right) \times 100 = 365\%\) 4. Calculate APR for Company D: - Fees charged: \$[/tex]100
- Term of loan: 8 days
- APR for D = [tex]\(\left(\frac{100}{500}\right) \times \left(\frac{365}{8}\right) \times 100 = 912.5\%\)[/tex]

Now, we rank these companies based on their APR values from lowest to highest:
- Company A: 219%
- Company B: 304.167%
- Company C: 365%
- Company D: 912.5%

Therefore, the correct order from lowest to highest APR is:
a. A, B, C, D

So the correct answer is:
a. A, B, C, D

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