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Holly has the option of borrowing $540 for one week at an APR of 700% or borrowing the $540 for one week with a fee of $75. Which is the "better" deal?

A.Borrowing the $540 for one week at an APR of 700%, since Holly will owe less interest this way than with the fee of $75

B.Borrowing the $540 for one week at an APR of 700%, since Holly will owe more interest this way than with the fee of $75

C.Borrowing the $540 for one week with a fee of $75, since Holly will owe more interest this way than with the 700% APR

D.Borrowing the $540 for one week with a fee of $75, since Holly will owe less interest this way than with the 700% APR

Respuesta :

Borrowing the $540 for one week at an APR of 700%, since Holly will owe less interest this way than with the fee of $75

Borrowing the $540 for one week at an APR of 700%, since Holly will owe more interest this way than with the fee of $75.

What is an Interest?

Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate (APR).

According to the given problem,

700% per year is roughly 13.46% per week

So $540.00 at one weeks interest is

540 * .1346 = $72.69 at one week interest

Hence, it is concluded that borrowing $540 at 700% annual interest saves about $2.31 from paying a one week fee of $75.

Learn more about Interest here:

https://brainly.com/question/21743489

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