💡 Quiz Challenge: What’s the approximate APR?
Scenario: A business financing offer with the following terms:
Financing amount: $22,800
Fixed fee: $2,599
Total owed: $25,399
Repayment rate: 25% of each transaction until the total is repaid
Minimum repayment requirement: $2,822.12 within 60 days
Assumed full repayment period: 10 months (~300 days)
Q: If the merchant’s sales remain steady and the advance is repaid in about 10 months, what is the closest approximate APR for this deal?
A) 11%
B) 28%
C) 31%
D) 38%
E) 45%
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