Answer:
[tex]\text{APR}\approx 194.7\%[/tex]
Step-by-step explanation:
We have been given that an 18-day single payment loan has a periodic interest rate of 9.6%.
To solve our given problem, we will divide number of days in a year (365) by 18 and multiply by periodic interest rate.
[tex]\text{APR}=\frac{365}{18}\times 9.6\%[/tex]
[tex]\text{APR}=20.2777777\times 9.6\%[/tex]
[tex]\text{APR}=194.66666\%[/tex]
[tex]\text{APR}\approx 194.7\%[/tex]
Therefore, the APR of the loan would be approximately 194.7%.
