LINKING concepts... For Individual or Group Explorations Pay Day Loans Star Financial Corporation offers short-term loans as shown in the accompanying advertisement. If you borrow P dollars for n days at the annual percentage rate r, then you pay back A dollars where . a) Solve the formula for r in terms of A. P. and n. b) Find the annual percentage rate (APR) for each of the loans described in the advertisement. c) If you borrowed $200. then how much would you have to pay back in one year using the APR that you determined in part (b)? d) Find the current annual percentage rates for a car loan, house mortgage, and a credit card. e) Why do you think Star Financial Corporation charges such high rates?
LINKING concepts... For Individual or Group Explorations Pay Day Loans Star Financial Corporation offers short-term loans as shown in the accompanying advertisement. If you borrow P dollars for n days at the annual percentage rate r, then you pay back A dollars where . a) Solve the formula for r in terms of A. P. and n. b) Find the annual percentage rate (APR) for each of the loans described in the advertisement. c) If you borrowed $200. then how much would you have to pay back in one year using the APR that you determined in part (b)? d) Find the current annual percentage rates for a car loan, house mortgage, and a credit card. e) Why do you think Star Financial Corporation charges such high rates?
Solution Summary: The author explains the formula for r in terms of A, P, and n.
Star Financial Corporation offers short-term loans as shown in the accompanying advertisement. If you borrow P dollars for n days at the annual percentage rate r, then you pay back A dollars where
.
a) Solve the formula for r in terms of A. P. and n.
b) Find the annual percentage rate (APR) for each of the loans described in the advertisement.
c) If you borrowed $200. then how much would you have to pay back in one year using the APR that you determined in part (b)?
d) Find the current annual percentage rates for a car loan, house mortgage, and a credit card.
e) Why do you think Star Financial Corporation charges such high rates?
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY