Sydney took out a $1000 loan to pay for her car to be repaired. The loan term was 180 days: She paid $85 in interest and a $30
origination fee.
Using the method below, determine the APR on Sydney's loan. (Do not include the % symbol. Round your answer to 2 decimal
places. For example: 15.58)
To calculate APR, you can follow these 5 simple steps:
1. Add total interest paid over the duration of the loan to any additional fees.
2. Divide by the amount of the loan.
3. Divide by the total number of days in the loan term.
4. Multiply by 365 to find the annual rate.
5. Multiply by 100 to convert the annual rate into a percentage.