Van Buren Resources Inc. is considering borrowing $120,000 for 168 days from its bank. Van Buren will pay $7,000 of interest at maturity, and it will repay the $120,000 of principal at maturity. Assume that there are 365 days per year. Calculate the loan’s annual financing cost. Round your answer to two decimal places.   % Calculate the loan’s annual percentage rate. Round your answer to two decimal places.   %

Q: What is the APR on this loan?

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A:

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